Fortnightly - NewEnergyhttps://www.fortnightly.com/tags/newenergy
enTrusting Capacity Marketshttps://www.fortnightly.com/fortnightly/2011/12/trusting-capacity-markets
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Does the lack of long-term pricing undermine the financing of new power plants?</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>J.P. Pfeifenberger and S.A. Newell</p>
</div></div></div><div class="field field-name-field-import-bio field-type-text-long field-label-inline clearfix"><div class="field-label">Author Bio:&nbsp;</div><div class="field-items"><div class="field-item even"><p><b>Johannes Pfeifenberger</b> and <b>Sam Newell</b> are principals of The Brattle Group. The article is based on Section IV of the authors’ recent review of PJM’s capacity market. The authors acknowledge the contributions of Robert Mudge, James Read, Kathleen Spees, and Paul Sotkiewicz. The opinions expressed in this article, as well as any errors or omissions, are solely those of the authors.</p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - December 2011</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Capacity markets were implemented in a number of restructured power markets to meet resource adequacy requirements through a market-based solution. However, after several years of experience with capacity markets, their performance is questioned by many market participants.</p>
<p>While Brattle Group’s recent review of PJM’s capacity market, the Reliability Pricing Model or “RPM,” concludes that the market is performing very well, discussions with a number of stakeholders reveal considerable doubt that capacity markets can support new generation investments.<sup>1</sup> The general concern is that prices are too uncertain because capacity auctions establish the price only for one year at a time, and buyers aren’t willing to sign long-term contracts bilaterally. However, different stakeholders also offer different perspectives.</p>
<p>State regulators in eastern PJM express the concern that after several years of operation and high prices, the capacity market hasn’t led to significant new construction of power plants. Regulators and a number of market participants also point to a lack of long-term contracting that could support the financing of new generation additions in eastern PJM. Some of the generation developers specifically note that the three-year forward capacity prices under PJM, which are locked in for only one delivery year at a time, can’t support the financing of new generation projects. They suggest that prices would need to be locked in for 10 years or more to support financing of new generation projects, a notion that’s echoed by some financial industry participants.<sup>2</sup> They also stress that buyers are unwilling to enter into longer-term contracts.</p>
<p>Public power companies, such as cooperative utilities, indicate a strong interest in signing long-term contracts, but note that they’ve been unable to find willing suppliers. Stakeholders agree that long-term bilateral contracting currently isn’t available for more than the next three to five years.</p>
<p>The regulators’ and generators’ concern that an absence of long-term bilateral contracts undermines the financing of new plants seems inconsistent with public power stakeholders’ concern that suppliers have been generally unwilling to offer such long-term contracts. This apparent inconsistency, however, is explained largely by current market fundamentals and economic conditions that haven’t justified the addition of new generating capacity.</p>
<p>That means it’s premature to conclude that capacity markets need major changes to support new investment; merchant generation investment and longer-term contracting are likely to reemerge when market fundamentals support the addition of new generating resources.</p>
<h4>The Role of Market Fundamentals</h4>
<p>Relatively few new power plants have been built in eastern PJM since RPM has been implemented. However, that doesn’t mean no new resources have been added in eastern PJM. Since 2007, capacity uprates of existing plants (2,210 MW), reactivations (360 MW), export reductions (930 MW), increased demand response (6,550 MW), and approximately 2,040 MW of new generation capacity has been committed through RPM in eastern PJM. And another 650 MW of new generation offers have been submitted but failed to clear because sufficient capacity was offered at prices below the cost of new generation.</p>
<p>The relatively modest level of new generation construction in eastern PJM hasn’t led to resource adequacy shortfalls, as some stakeholders believe. Rather, reserve margins have remained at or above target levels due to the combination of entry by these new generation units, demand response resources, upgrades to existing capacity, deferred retirements, planned transmission upgrades, and the economic slowdown. Moreover, RPM has maintained resource adequacy at prices that are generally below the cost of new generating plants.</p>
<p>State regulators are correct that market prices for capacity in eastern PJM have been significantly higher than in the remainder of PJM in most of the recent capacity auctions. However, even the higher eastern PJM capacity prices have generally remained below the cost of new plants. Prices will remain below the cost of new plants until new generation is needed and capacity prices rise to clear new offers.</p>
<p>The underlying fact under these market fundamentals is that new generation simply isn’t cost-competitive with lower-cost options—such as uprates, deferred retirements, and demand response. That’s likely the primary reason why more new generating plants haven’t been built in eastern PJM. That capacity prices will remain below the cost of new plants through 2015 and possibly for several more years is likely also the primary reason that some developers’ new generation projects can’t be financed without long-term contracts that cover project costs. Current market conditions simply don’t support long-term contracts at prices high enough to finance new plants because rational buyers prefer to satisfy their capacity requirements at market prices that are below the contract cost of a new plant.</p>
<p>Under these market conditions, when few or no new plants are needed, the only way to finance additional new generation would be through above-market long-term contracts. Such above-market contracts have recently been offered through a legislative mandate, which procured capacity for three new plants under fixed-price 15-year contracts whose costs aren’t public but that are estimated at $270 to $350 per MW-day.<sup>3</sup> In comparison, RPM prices in have been much lower at $136 to $225/MW-day in PJM’s most recent capacity auction. Nevertheless, in October 2011, the utilities similarly issued RFPs for new generation under direction of the Maryland PSC.</p>
<p>In short, the lack of long-term contracts and financing for new plant construction is a consequence of the fact that investments in new generation are currently unprofitable and not a least-cost option to ensure resource adequacy. Under these circumstances, a well-functioning market won’t reward investments in new generation. The absence of new construction is a sign that the market is working.</p>
<p>Current market fundamentals are also the likely reason that public power entities looking for long-term capacity contracts haven’t found willing suppliers. First, given that capacity prices might remain below the cost of new plants for a number of years, buyers interested in long-term contracts won’t be willing to sign long-term contracts priced at the full cost of new power plants. Thus, developers of new power plants will be unwilling to offer long-term contracts at prices acceptable to buyers. Second, even owners of existing generating capacity will be unwilling to sign long-term contracts at prices equal to current market prices if they anticipate that RPM prices will increase over time. It’s likely, however, that buyers’ and existing generators’ interest in longer-term contracting will increase during the next several years as excess capacity diminishes and capacity market prices rise to the cost of new generation.</p>
<h4>Financing Power Plants</h4>
<p>Without a need for new plants, financing for such plants won’t be available unless supported by above-market long-term contracts.<sup>4</sup> However, this doesn’t mean that financing is unavailable for sound investments at costs that are consistent with market fundamentals. In fact, there’s been keen interest in plant acquisition. Several major transactions of power plants in eastern PJM demonstrate the availability of financing for generation investments.</p>
<p>A notable example in eastern PJM is Calpine’s 2010 acquisition of 4,490 MW of Conectiv Energy power plants from Pepco Holdings. The $1.63 billion purchase included some existing forward capacity and energy sales commitments as well as a six-year tolling agreement with Constellation Power for the Delta power plant that was under construction at the time. Importantly, it was financed with $1.3 billion of seven-year debt and $100 million of three-year debt.</p>
<p>Many generation developers prefer to build new power plants through highly leveraged project finance arrangements, which require long-term power purchase agreements. Project finance refers to the use of project-specific debt, also called “non-recourse” debt that isn’t backed by a guarantee from a larger parent company. Project finance often is the only available option for small project development companies that don’t have a significant portfolio of other assets or for companies with weak balance sheets and poor credit ratings.</p>
<p>Such non-recourse debt is secured solely by the revenues and asset value of the specific power plant. It’s more risky to the lender and consequently more expensive than corporate debt, which is secured by the more diversified revenues and assets of the parent company. However, while more expensive than corporate debt of companies with investment-grade credit ratings, non-recourse debt is still attractive to developers because it’s less expensive than equity and reduces the potential liability to the parent company if the project proves to be a bad investment. Non-recourse debt also can be less expensive than the corporate debt of companies with poor credit ratings.</p>
<p>To reduce financing costs, project developers also will prefer to lever up their investments by using higher levels of debt and less equity. However, such reductions in financing costs are possible only if project risks are reduced through long-term power purchase agreements that shift market risks from the generation owner to the buyer of the power. In fact, by assuming project risks through a long-term contract, the buyer is reducing (and essentially subsidizing) the financing cost of the new plant. Financing projects with high levels of debt (<i>e.g.</i>, 70 to 80 percent debt) can reduce the levelized annual investment cost of a project by 10 percent to 20 percent compared to merchant plant financing, which may allow financing with only 30 percent to 50 percent non-recourse debt (backed solely by the project) or 50 percent to 60 percent corporate debt (backed by the entire parent company).</p>
<p>A range of financing arrangements will exist in well-functioning markets. Buyers can assume risks under a long-term contract—which supports more highly leveraged financing by the developers—or developers can assume these risks—which requires financing with more equity—depending on risk sharing preferences and the financial conditions of the counterparties.</p>
<p>Until new generation is actually needed, it isn’t desirable to enable uneconomic investments in new generation through long-term power purchase agreements (PPAs) when those developments are more costly or more risky than capacity from market-based resources, including from existing generation supplies and demand response when new generation isn’t needed.</p>
<h4>Reforming Default Service</h4>
<p>Longer-term contracting should be expected to increase as capacity market prices reach and sometimes exceed the cost of new generation. It’s conceivable, however, that market or regulatory barriers could prevent an outcome in which an efficient level of longer-term contracting can be achieved.</p>
<p>The current nature of retail services in restructured states may represent such a barrier that might inhibit reaching optimal levels of long-term capacity contracting. That is because a significant portion of retail load is supplied under regulated default service arranged by electric distribution companies and overseen by utility commissions. In restructured eastern PJM states, such as New Jersey and Maryland, the distribution companies are required to procure bundled energy and capacity supplies for these default service obligations. The contracts for such default service procurement have durations of only three years or less. This sole reliance on short- or intermediate-term contracts under state-regulated default service procurement appears to deviate significantly from the procurement and risk management practices of large competitive retail service providers.</p>
<p>Many competitive retail service providers secure a meaningful portion of their supplies through long-term contracts or even the acquisition of generating assets. Such actions are designed to counter the effects of perceived broken linkages between competitive retail and wholesale markets by reducing the transaction costs of securing long-term contracts and effectively vertically re-integrating load-serving responsibilities with merchant generation. For example, Constellation’s NewEnergy retail supply business obtains energy from a portfolio of various sources, including its own generation assets, contractually-controlled generation assets, exchange-traded bilateral power purchase agreements, unit-contingent power purchases from generation companies, tolling contracts with generation companies, and spot purchases from the regional power markets.<sup>5</sup> This portfolio balances retail sales contracts that are reported to extend from one to 10 years and beyond, although these generally won’t be exactly matched by long-term capacity procurement contracts. Constellation Energy explicitly stated that its that its strategic objective for retail service operations is to buy generation assets in regions where the company doesn’t have a significant generation presence and to enter into longer-term agreements with merchant generators. In fact, this objective was a primary reason for Constellation’s purchase of generating plants in Texas as well as its recent acquisition of 2,950 MW of generating plants in New England, which “improved [Constellation’s] net load to generation ratio to approximately 55 percent.”<sup>6</sup></p>
<p>Direct Energy, another retail service provider, appears to have started pursuing a similar strategy through long-term contracting power from generation suppliers, buying physical generation assets, and even acquiring natural gas production, storage and transportation.<sup>7</sup> Similarly, NRG’s recently announced acquisition of Energy Plus Holdings was explained as an effort to “expand its retail marketing presence in the Northeast and Mid-Atlantic” to give the company “more of a retail presence to offset its generation assets in periods when wholesale power prices are depressed.”<sup>8</sup> NRG’s announcement also marked another retail acquisition following Constellation Energy Group’s purchase of StarTex Power and its planned acquisition of MXenergy, and Direct Energy Services’ purchase of Gateway Energy Services.</p>
<p>It’s unclear what fraction of total retail load should be supplied through long-term contracts or physical plant ownership. Such decisions will depend upon a company’s tolerance for risk and expectations regarding future market conditions. While long-term contracts and physical plant ownership will stabilize procurement costs, they also create the risk that costs will be above market. However, it’s possible that the most efficient amount and duration of long-term contracting may exceed the amount realized for load under current default service procurement. This potential concern over whether the short- and medium-term nature of default service procurement creates a barrier to efficient contracting should primarily be a matter for state commissions and state legislatures, which should examine it in the context of improving retail choice and default service regulations. The best way to realize an efficient level of long-term contracting and asset ownership among retail providers might be for the states to reform or reduce their reliance on default service. That would foster increased interaction between retail service providers and customers—would allow market participants to determine the most efficient retail supply portfolio. Reduced reliance on default service, for example, exists in Texas where most retail customers are served by competitive suppliers after default service was eliminated in 2007—although a provider of last resort service is still available to customers who lose their competitive service providers.<sup>9</sup> A second option that states could pursue would be to review default service procurement practices to determine the extent to which longer-term contracts, procured on a non-discriminatory basis from existing or new resources, should be part of default service procurement.</p>
<p>Only if states fail to pursue these options and generation investment lags, even as market prices reach or exceed net CONE [cost of new entry], might it be necessary to add mandatory long-term procurement to the current capacity market designs. However, this is a far less desirable option and worth pursuing only if it becomes clear that a review and revision of default service procurement is unlikely—and then only if it can be determined with sufficient confidence that longer-term contracts will actually be needed within the RTO capacity market design to assure resource adequacy at reasonable costs.</p>
<h4>Managing Investment Risks</h4>
<p>There’s a perception that new generation can’t be built without long-term PPAs of close to 10 years or more. As noted, this perception is largely created by current low-priced market fundamentals and the preference among developers to lay off risks onto contract counterparties. Reliance on long-term contracts is also rooted in the regulated past of the industry, including qualifying facilities (QF) under the Public Utility Regulatory Policies Act (PURPA). However, a number of observations about customer preferences and contracting practices in other capital-intensive industries suggest that widespread current perceptions might overstate the need for long-term contracting as the industry evolves.</p>
<p>First, most retail customers are unwilling to commit to long-term contracts. The reluctance isn’t unique to restructured electric power markets. This is also the case for most energy commodities sold in retail markets, including commodities with even higher price uncertainty, such as gasoline. If fixed-price contracts are signed in other retail market segments, they rarely go beyond the next season (<i>e.g.</i>, heating oil), or the next two years (mobile telecom service). In fact, long-term contracts between retail customers and suppliers are uncommon even in the most risky and capital intensive portions of the energy industry—such as oil and natural gas exploration—and remain uncommon despite the high and unpredictable nature of risks, such as oil price movements based on a wide range of geopolitical influences, including cartel behavior.</p>
<p>Second, other capital-intensive industries with significant price risks generally require that investments are backed by companies with sufficient equity. However, such “balance sheet financing” of major investments is less common in the electric power industry.<sup>10</sup> While numerous examples of balance-sheet financing and generation investments without long-term PPAs or other long-term price hedges exist—including merchant wind power development—project financing arrangements supported by long-term PPAs remain the first choice of most power plant developers.<sup>11</sup></p>
<p>The lower reliance on balance sheet financing in the power industry doesn’t mean that project developers in other industries wouldn’t prefer the lower risk and financing costs they would be able to achieve if they had long-term sales agreements. Nor does it mean that power industry developers are unable to develop projects without long-term sales agreements. Rather, the relatively low levels of balance-sheet financing in the power industry appear to be an artifact of industry evolution. Specifically, the merchant generation sector has evolved based on: 1) long-term PPAs with regulated utilities, starting with mandated QF contracts in the late 1980s and early 1990s; 2) project development efforts by small companies without much equity; and 3) a reliance on highly leveraged financing arrangements.</p>
<p>Third, large competitive retail electricity providers and companies in other capital-intensive industries, including in oil and gas, also tend to be partially (but not fully) vertically integrated to manage risks and reduce transactions costs. Many competitive retail providers have bought physical assets or signed a portfolio of contracts to manage overall supply obligations and associated risks. Such a partial vertical re-integration appears to be becoming more prevalent in electricity markets. In the United Kingdom, for example, all major retail suppliers have re-integrated into the generation business.<sup>12</sup> Similarly, generation owners are integrating vertically into retail sales, as noted in the above discussion of NRG, Constellation, and Direct Energy, and with Exelon’s proposed merger with Constellation as another recent example.</p>
<p>A transition to a partially integrated industry structure has a number of potential advantages and will reduce the need for, or compensate for the lack of, extensive bilateral contracting.<sup>13 </sup>Competition will be maintained or enhanced because the companies have a reduced ability and incentive to exercise market power and, unlike in non-restructured markets, aren’t fully integrated and don’t enjoy exclusive service franchises.<sup>14</sup></p>
<p>Consistent with these observations, the deregulated electricity industry likely will migrate naturally to a partially vertically integrated structure that, over time, will rely less on long-term PPAs to underwrite new generation development. These trends reflect an efficient response to deregulation, which shifts the risks of potentially uneconomic generation investments away from customers and toward developers. As increasingly large and diversified companies, these developers will be in a better position to evaluate, manage, and bear these risks. Regulatory or legislative intervention to force long-term contracting in restructured markets—even if accomplished via the typical capacity market design—carries with it the risk of interfering with the natural evolution of the industry and threatening adverse long-term consequences for future capacity expansion.</p>
<h4>Market Fundamentals</h4>
<p>There may be many generation projects that can’t get financed and built under current market conditions. However, while some project developers might cast this as a market failure caused by the inadequacies of capacity markets or state retail choice constructs, the primary reason that these projects can’t get financed and built is that they are currently uncompetitive with alternative sources of capacity.</p>
<p>The main reason for the low activity of new power plant construction in eastern PJM, for example, is the fact that new plants haven’t been needed—and won’t be needed for several more years—due to a combination of economy-related decreases in load growth, transmission upgrades, and the availability of lower-cost supply options, such as deferred retirements, demand response, and upgrades to existing units. In fact, PJM’s capacity market has successfully ensured resource adequacy at prices below the cost of new plants. In other words, the lack of long-term contracts for new generation is explained by market fundamentals and the simple fact that new plants have been out of the money.</p>
<p>These market fundamentals also explain the lack of long-term contract offers from existing generation. Suppliers of existing capacity are unwilling to enter long-term contracts at low current prices because they expect prices will rise. At the same time, buyers are unwilling to pay higher prices or even the cost of new generation when there are less expensive options currently available in the market.</p>
<p>When new plants are needed for resource adequacy, capacity market prices will rise and will make these investments attractive—both on a merchant and long-term contracting basis. It’s likely that the need for and reliance on very long-term PPAs and project financing ultimately will diminish as the industry evolves and an increasing share of new plants are developed by larger, partially vertically-integrated companies with load-serving responsibilities, a portfolio of merchant generation, and sufficiently strong balance sheets to finance the needed investments.</p>
<p>It’s possible, however, that merchant investors remain wary of market volatility and vulnerability to regulatory intervention, in which case more long-term contracting will be needed. In that case, some load-serving entities will also be interested in procuring more of their resources under long-term contracts or by owning physical generation to hedge the price uncertainty. Yet several secondary factors could still create barriers to long-term contracting, such as the structure of default service procurement in retail access states. If these barriers turn out to be significant—which is difficult to determine under current market conditions—modifying how default service procurement is regulated at the state level may be the most effective way to address these barriers.</p>
<p>If merchant investment and long-term contracting are both impeded even as market fundamentals become tighter—which isn’t yet evident—it might be worth considering policy options to force long-term contracting. One option would be for RTOs to add longer-term procurement to the current capacity market designs. Such decisions shouldn’t be made prematurely, however, because it shouldn’t be the role of an RTO to force long-term contracting for capacity resources when load-serving entities don’t see the risk management benefit of entering into such contracts bilaterally. Nor would an RTO be able to readily determine the amount of long-term contracting or contract terms that optimally balance risks. Mandating too much long-term contracting would inefficiently expose suppliers to delivery and credit risks, while exposing buyers to larger risk premiums and the potential for stranded costs.</p>
<p> </p>
<h4>Endnotes:</h4>
<p>1. Pfeifenberger, Newell, Spees, Hajos and Madjarov, “Second Performance Assessment of PJM’s Reliability Pricing Model,” Aug. 26, 2011.</p>
<p>2. See also letters from Credit Agricole and Union Bank attached to LS Power Associate Comments on New Jersey Electric Power and Capacity Needs, Submitted in State of New Jersey Board of Public Utilities, Docket No. EO 09110920, July 2, 2011.</p>
<p>3. Approximate procurement prices were calculated in “Comments of the New Jersey Electric Distribution Companies on Agent’s March 21, 2011 Report,” March 24, 2011.</p>
<p>4. See also B. Chin, “Capacity Issues Technical Conference: State of New Jersey,” Citi Investment Research, June 24, 2010, noting that “in our view, energy/capacity markets are providing a signal that capital shouldn’t be deployed to [new] generation at this time, unless subsidies are enacted.”</p>
<p>5. See Constellation’s 2010 10-K filing, Part 1, Item 1, pp. 4-5.</p>
<p>6. “Constellation Energy Signs Agreement to Acquire the 2,950 MW Boston Generating Gas Fleet in New England,” Constellation Press Release, August 9, 2010.</p>
<p>7. “Direct Energy Corporate Fact Sheet.” May 2011.</p>
<p>8. Megawatt Daily, “NRG to buy Energy Plus Holdings for $190 mil,” Aug. 17, 2011.</p>
<p>9. Kiesling and Kleit (2009), Electricity Restructuring: The Texas Story, Chapter 8, AEI Press, Washington, D.C.</p>
<p>10. The use of balance sheet financing doesn’t mean that medium- or long-term contracts are eliminated for these projects. Rather, it simply means that the role of medium or long-term contracts is reduced because at least some projects can be built with less of the project costs hedged through long-term contracts. Projects may be built without PPAs, shorter-term PPAs, or PPAs that cover only a portion of the project’s expected sales.</p>
<p>11. For example, the DOE reports that in 2009, 38 percent of all new wind generation capacity was from merchant or quasi-merchant projects that relied on short-term contracts or hedged wholesale spot market sales rather than long-term PPAs. See Wiser and Bolinger (2010), 2009 Wind Technologies Report, DOE Energy Efficiency and Renewable Energy, August 2010, p. 34.</p>
<p>12. In the U.K., for example, restructuring in the early 1990s resulted in completely vertically unbundled industry structure. Today, the six largest competitive retail suppliers (supplying 99 percent of retail load) also own approximately 70 percent of the installed generating capacity. Note, however, that such partial integration by large companies will also tend to make it more difficult for smaller and non-integrated suppliers to enter and compete in the market. See Ofgem, Liquidity Proposals for the GB wholesale electricity market, February 2010.</p>
<p>13. For a discussion of the implications of vertical re-integration of competitive retail service and generation companies, see Meade and O’Connor (2009) “Comparison of Long-Term Contracts and Vertical Integration in Decentralised Electricity Markets,” Larsen Working Paper No. 26, October 2009; and Mansur (2007) “Upstream Competition and Vertical Integration in Electricity Markets,” 50 J. Law &amp; Econ. 125.</p>
<p>14. See, for example, Bushnell, J. B., Mansur, E. T. &amp; Saravia, C. (2008). “Vertical Arrangements, Market Structure, and Competition: An Analysis of Restructured U.S. Electricity Markets.” American Economic Review, 98, 237-266.</p>
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Thu, 01 Dec 2011 05:00:00 +0000puradmin13495 at https://www.fortnightly.comVendor Neutralhttps://www.fortnightly.com/fortnightly/2011/03/vendor-neutral
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">Vendor Neutral</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - March 2011</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/1103-VENpic1.jpg" width="1492" height="1448" alt="Ford’s new Focus Electric uses new smart-charging software from Microsoft, including a smartphone app that allows users to control their vehicles remotely." title="Ford’s new Focus Electric uses new smart-charging software from Microsoft, including a smartphone app that allows users to control their vehicles remotely." /></div><div class="field-item odd"><img src="https://www.fortnightly.com/sites/default/files/1103-VENpic2.jpg" width="1500" height="996" alt="Midwest ISO employees got a chance to test drive the ThinkCity electric vehicle, which Energy Systems Network is promoting in the Indianapolis metro area. " title="Midwest ISO employees got a chance to test drive the ThinkCity electric vehicle, which Energy Systems Network is promoting in the Indianapolis metro area. " /></div><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/1103-VENpic3.jpg" width="941" height="617" alt="Central Maine Power contracted TRC Companies to provide engineering, design and procurement services for five substation projects. Pictured: Progress on the new Albion Road Substation in Benton, Maine." title="Central Maine Power contracted TRC Companies to provide engineering, design and procurement services for five substation projects. Pictured: Progress on the new Albion Road Substation in Benton, Maine." /></div><div class="field-item odd"><img src="https://www.fortnightly.com/sites/default/files/1103-VENpic4.jpg" width="1500" height="1000" alt="The 30 MW Cimarron solar facility, developed by Southern Company and Ted Turner, went online in December 2010. " title="The 30 MW Cimarron solar facility, developed by Southern Company and Ted Turner, went online in December 2010. " /></div><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/1103-VENpic5.jpg" width="409" height="749" alt="Constellation Energy is using Verizon connectivity to provide access to its customer energy management applications." title="Constellation Energy is using Verizon connectivity to provide access to its customer energy management applications." /></div><div class="field-item odd"><img src="https://www.fortnightly.com/sites/default/files/1103-VENpic6.jpg" width="1488" height="2240" alt="As part of KCP&amp;L’s smart grid demonstration, Siemens is installing electric vehicle charging stations in the Kansas City project area." title="As part of KCP&amp;L’s smart grid demonstration, Siemens is installing electric vehicle charging stations in the Kansas City project area." /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><h4>EVs &amp; Storage</h4>
<p><span class="boldred">Ford Motor Co. </span>unveiled the Focus Electric, the company’s first-ever all-electric passenger car, at the Consumer Electronics Show in January. Ford says the Focus is the flagship of its line of hybrid, plug-in hybrid and all-electric vehicles coming to North America and Europe by 2013. The Focus Electric will launch in late 2011 and introduces a new version of the MyFord Touch driver connect system especially for electric vehicles, using Microsoft technology and a smartphone app called MyFord Mobile that helps plug-in owners control their vehicles remotely. The Focus Electric’s lithium-ion battery pack features liquid cooling and heating to help maintain charge and extend battery life. The company says the car will go about 100 miles on a charge. Ford also is offering customers a 240-volt wall-mounted charge station that will be sold separately, reportedly for about $1,500, that will provide a full recharge in about 3.5 hours. After federal tax incentives, the basic Focus Electric will carry a sticker price of about $33,500. Both Focus gasoline and electric variants to be sold in North America will be built at Ford’s Michigan Assembly Plant in Wayne, Mich.</p>
<p><span class="boldred">Midwest ISO</span> arranged for dozens of its employees to test drive—and buy—plug-in electric vehicles (PEVs), manufactured by electric car maker THINK. The Ride &amp; Drive event was sponsored by Energy Systems Network as part of Project Plug-IN, an initiative to bring electric cars to the streets of central Indiana. The Midwest ISO plans to install a charging station at its headquarters in Carmel, Ind. Project Plug-IN aims to introduce plug-in vehicles in the Indianapolis metropolitan area, with plans to install more than 200 charging stations throughout the region.</p>
<p><span class="boldred">The Electric Power Research Institute (EPRI)</span> and the <span class="boldred">Tennessee Valley Authority</span> demonstrated a new prototype six-bay integrated solar-assisted electric vehicle charging station at the EPRI laboratory in Knoxville, Tenn. EPRI says it’s among the first stations in the U.S. that incorporates energy storage technology into the design. The prototype station will produce data that will assist in implementing key components of a smart grid, such as integrating renewable energy onto the grid, assessing the impact on reliability of distributed resources, testing advance metering infrastructure, and analyzing electric vehicle equipment.</p>
<p><span class="boldred">Zigbee Alliance</span> and <span class="boldred">SAE International</span> collaborated on ZigBee Smart Energy standard development. Their efforts aim to make ZigBee Smart Energy the preferred technology supporting plug-in electric vehicles (PEV) and enabling essential vehicle to grid (V2G) communication and power capabilities. This initiative will provide future PEV drivers with real-time information to control transportation energy use, manage charging costs and apply utility program incentives. It also provides control functions to manage PEV charging while maintaining grid integrity. ZigBee says Smart Energy version 2.0 is scheduled for completion next year.</p>
<p><span class="boldred">ZBB Energy</span> successfully tested and delivered its ZESS POWR PECC and ZESS 50 energy storage solutions to the energy lab at University of Wisconsin-Milwaukee’s College of Engineering &amp; Applied Science. WERC researchers will use ZBB technology to study individual wind turbines and remodel an entire wind farm system to improve reliability and dispatchability.</p>
<p><span class="boldred">A123 Systems</span> received an order from AES Gener for 20 MW of A123’s advanced energy storage solutions for a spinning reserve project at the site of the new 500 MW Angamos power plant in Northern Chile. The project expands the relationship between A123 and AES Energy Storage and is AES’ second in Chile to use A123 energy storage technology. In 2009 the companies announced the commercial operation of a 12-MW spinning reserve project at AES Gener’s Los Andes substation in the Atacama Desert, reportedly the first energy storage system deployed in Chile. The energy storage capacity is intended to help Gener maintain the stability of its electric grid.</p>
<p>The U.S. Army Communications-Electronics Research, Development, and Engineering Center awarded <span class="boldred">UltraCell</span> a contract to advance a fuel cell system for the Coalition Warfare Program. The contract award is valued at $999,000. Under the contract, UltraCell engineers will use a 150-Watt fuel cell system prototype, originally developed for the United Kingdom Ministry of Defense.</p>
<h4>Transmission</h4>
<p> </p>
<p><span class="boldred">Central Maine Power (CMP) </span>awarded an $11.4 million contract to TRC Companies to provide engineering, design and procurement services associated with the modification and expansion of five existing substations. The project is part of a CMP program to modernize Maine’s transmission system. Under the contract, TRC will deliver detailed designs for the expansion of the five substations, 345 kV and 115 kV in size. TRC will also manage the procurement of materials associated with design and construction and will provide overall project management services.</p>
<p><span class="boldred">Southern California Edison (SCE) </span>implemented and deployed Autodesk’s utility solutions to its transmission and distribution business unit. The solution, which includes Autodesk utility design software and subscription professional services, is helping SCE to streamline workflows where engineering and construction standards are linked to the design process.</p>
<p><span class="boldred">ABB</span>’s Network Manager market management system (MMS) is being used to administer the wholesale power market for the <span class="boldred">Electric Reliability Council of Texas (ERCOT)</span>. Under the management of ABB’s MMS, which ABB says is fully compatible with existing third-party systems, the new market system will deliver rapid and detailed electricity price calculations and scheduling, enabling effective management of electricity supply and demand.</p>
<h4>People</h4>
<p>Maryland Gov. Martin O’Malley appointed <span class="boldred">Eric Wachsman</span> and <span class="boldred">George Ashton</span> to the board of directors of the <span class="boldred">Maryland Clean Energy Center</span>.</p>
<p><span class="boldred">Ronald Moe</span> was named vice president of <span class="boldred">SAIC Energy’s Asset Transaction Services Practice</span>. Previously Moe served as the senior vice president and head of Ventyx Advisors. He also held management positions at R. W. Beck, now an SAIC company; Jacobs Consultancy; and Stone &amp; Webster Management Consultants.</p>
<p><span class="boldred">Evergreen Solar</span> appointed <span class="boldred">Donald W. Reilly</span> as CFO, Reilly replaces Paul Kawa who had been serving as interim CFO since September 2010.</p>
<p><span class="boldred">Southwest Solar Technologies</span> appointed <span class="boldred">Bradley P. Forst</span> as its new CEO. Forst was formerly the president and CEO of Simula and president and CEO of Gradient Analytics Inc.</p>
<p><span class="boldred">Cupertino Electric</span> announced that former v.p. of Energy Alternatives <span class="boldred">John Curcio</span> has been promoted to COO. <span class="boldred">Paul Aggarwal</span> is taking over Curcio’s role in the Energy Alternatives Division as v.p. of operations.</p>
<p>Conservation Services Group announced <span class="boldred">Janja Lupse</span> as New Jersey program director.</p>
<p>The board of directors at <span class="boldred">BPL Global</span> appointed <span class="boldred">Pete Londa</span> as acting CEO, succeeding Keith Schaefer.</p>
<h4>Generation</h4>
<p><span class="boldred">Southern Company and Ted Turner</span> partnered to energize the Cimarron Solar Facility, a 30-MW photovoltaic plant. Cimarron will supply power to the member electric cooperatives of Tri-State Generation and Transmission Association. Initially expected to go on line by the end of 2010, the facility was completed in eight months and began commercial operation in early December. <span class="boldred">First Solar</span> developed and constructed the facility and will provide operation and maintenance services under a long-term contract. Southern Company and Turner Renewable Energy acquired the project from First Solar in March 2010. Turner Renewable Energy is a wholly owned subsidiary of Turner Enterprises with a focus on development of commercial-scale solar projects. The 364-acre plant site is located within the service territory of Tri-State member system Springer Electric Cooperative in Colfax County, N.M., and is adjacent to Turner’s Vermejo Park ranch.</p>
<p><span class="boldred">Sempra Generation</span> selected <span class="boldred">Suntech Power Holdings</span> to design and construct the 150-MW Mesquite Solar 1 project in Arizona, which will sell power to <span class="boldred">Pacific Gas &amp; Electric</span> under a 20-year power purchase agreement, pending California Public Utilities Commission (CPUC) approval. Construction is slated to begin in mid-2011, with completion by 2013. Zachry will oversee the installation and integration of more than 800,000 Suntech multi-crystalline solar panels at the site.</p>
<p><span class="boldred">San Diego Gas &amp; Electric (SDG&amp;E)</span> and <span class="boldred">Pattern Energy</span> announced a 20-year contract for 315 MW of wind energy to be generated at Pattern’s Ocotillo Wind Energy Facility near Ocotillo, Calif., approximately 25 miles west of El Centro in the Imperial Valley. Pending government approvals, Pattern plans to complete the project by the end of 2012 to coincide with a 2012 in-service date for the 500-kilovolt Sunrise Powerlink transmission line, currently under construction. SDG&amp;E has signed four renewable power contracts in the past nine months totaling 600 MW to be transmitted across the Sunrise Powerlink. SDG&amp;E committed to obtaining 33 percent of its electricity from renewable resources by 2020.</p>
<p><span class="boldred">Southern California Edison (SCE) </span>signed contracts with <span class="boldred">SunPower Corp.</span> and <span class="boldred">Fotowatio Renewable Ventures</span> (FRV) for more than 800 MW of solar power generation, including output from one of the largest single solar PV installations (325 MW) in the United States.</p>
<p><span class="boldred">GreenCo Solutions</span> and <span class="boldred">North Carolina Electric Membership Corp.</span> entered 20-year contracts to acquire renewable energy certificates and electricity, respectively, from a new solar project <span class="boldred">Duke Energy</span> is acquiring from <span class="boldred">SunPower</span>. Groundbreaking at the 6.4 MW (DC) Murfreesboro Solar Project (equivalent to 5 MW AC) is expected this spring with startup in late 2011. GreenCo Solutions, a company owned by 22 electric cooperatives, will buy RECs generated by the facility to assist its members in meeting their solar power requirement under North Carolina’s renewable portfolio standard.</p>
<p><span class="boldred">Pepco Energy Services</span> reached an agreement to design and construct a $2.3 million photovoltaic (PV) project for the <span class="boldred">Department of Energy</span> at the Germantown, Md., campus. The project will be implemented under the U.S. General Services Administration’s Utility Energy Services Contract (UESC) with Pepco. The 10-month construction project, which began in October 2010, includes a 300-kW solar PV ground-mounted array and a 52-kW solar PV carport array with a Class II electric car charging station. Both the ground array and the carport array are expected to be operational by July 2011. The project uses monocrystalline PV modules manufactured by the Federal Prison Industries (FPI).</p>
<h4>Demand Response</h4>
<p><span class="boldred">Constellation Energy</span> partnered with Verizon to provide a new customer-access portal, NewEnergy Online, and demand response application, VirtuWatt, to enable customers to view their energy consumption information round-the-clock, from any location with Internet access. In addition, Verizon is providing Constellation Energy with a variety of other products and services to enable the Baltimore-based company to increase efficiency and better connect its employees and support collaboration across the enterprise.</p>
<h4>Smart Grid</h4>
<p><span class="boldred">Modesto Irrigation District</span> awarded a new contract to <span class="boldred">Open Systems International (OSI) </span>for a multi-phased real-time volt/VAR control system project. Based on the OSI Spectra distribution management system (DMS) platform, the system is intended to optimize system voltage levels, reduce system losses, manage reactive power supply and implement conservation voltage reduction. OSI says the project eventually will span 34 distribution substations and 170 distribution feeders.</p>
<p><span class="boldred">PPL Electric Utilities</span> deployed <span class="boldred">Alvarion’s</span> BreezeMAX Extreme 3650 WiMAX system as part of its smart grid communications network. <span class="boldred">Alcatel-Lucent</span> is providing a high-speed fiber-optic communication infrastructure for the project and managing end-to-end integration of the technologies. The communication network upgrade, supported by a grant from the U.S. Department of Energy, constitutes the first phase of PPL’s smart grid project, with initial coverage of some 60,000 customers over 150 square miles in the company’s Harrisburg, Penn., operating region. The project also includes deployment of a new distribution management system. Future phases might expand coverage of distribution automation to PPL’s other operating regions across central and eastern Pennsylvania.</p>
<p><span class="boldred">Kansas City Power &amp; Light (KCP&amp;L)</span> selected <span class="boldred">Siemens</span> to implement technology in its demonstration project, including the Siemens Spectrum Power distribution management system (DMS), which facilitates operations information management and security. The KCP&amp;L project includes four major components: distribution network management, distribution network automation, distributed energy resource and demand response management. It will use advanced metering infrastructure, meter data management, demonstration of time-of-use pricing and state-of-the-art customer end-use tools. In addition, hybrid electric vehicle charging, utility-scale battery storage and roof-top solar technology will provide the basis for enabling and managing renewable and sustainable energy resources within the project area.</p>
<p><span class="boldred">Cooper Power Systems</span> collaborated with <span class="boldred">Cisco</span> to incorporate Cisco’s secure IP-based smart gird technology into Cooper Power Systems’ next generation substation and distribution automation systems for electric utilities. The agreement will allow Cooper to include Cisco’s rugged routers and switches, the Cisco 2010 Connected Grid Router and the Cisco 2520 Connected Grid Switch in Cooper’s systems. Integrating this technology is expected to help utility customers reduce operating costs, support new sources of distributed energy, and increase reliability while automating and improving outage management. </p>
<h4>Metering</h4>
<p>The City of Naperville, Ill., selected <span class="boldred">Elster</span> and <span class="boldred">Tropos Networks</span> systems as part of the city’s smart grid initiative. Elster’s EnergyAxis smart grid solution and smart meters will provide advanced metering infrastructure (AMI) capabilities. Tropos’ GridCom architecture will provide the private wireless IP communications network across the distribution area, initially supporting backhaul of data collected by Elster’s EnergyAxis system. Naperville also will use combined solutions from <span class="boldred">Schneider</span> and <span class="boldred">Calico Energy Services</span> to provide load control management services. The initiative is aimed at modernizing the electric grid to improve operational efficiencies and reliability, and to provide Naperville electric customers with more information and options for choosing how they use electricity.</p>
<p><span class="boldred">Entergy New Orleans</span> selected <span class="boldred">Sensus</span> to provide its FlexNet AMI system, electric meters, in-home displays and programmable thermostats to support a home area networking pilot program partially funded by a grant from the U.S. Department of Energy. The pilot program is designed to encourage energy conservation by providing information to consumers about their electricity usage and their associated costs. For the next 24 months, starting in June, Entergy New Orleans will track and analyze the consumption behaviors of four specific customer control groups made up of qualified customers within the city of New Orleans. Customers in the first group will receive a smart meter; the second group will receive a smart meter and an in-home display that will deliver messages about electricity usage and associated costs; the third group will receive a smart meter and programmable thermostat, and will also be offered demand-response rebates; and the fourth group will have access to an Internet portal that will display near real-time information about electricity usage.</p>
<p><span class="boldred">OG&amp;E</span> deployed the <span class="boldred">Silver Spring Networks</span> CustomerIQ web portal to all customers equipped with a Silver Spring-enabled smart meter, providing access to insights about energy usage. The deployment is part of OG&amp;E’s demand-response study, now in its second year.</p>
<h4>M&amp;A</h4>
<p><span class="boldred">GE Energy Financial Services</span> and the <span class="boldred">Government of Singapore Investment Corp.</span> each acquired 24.95 percent of a 2,500 MW natural gas fired power generation portfolio owned by <span class="boldred">ArcLight Capital Partners</span>, which will retain 50.10 percent. The plants, located throughout the state of Georgia, comprise a combined cycle facility and four single-cycle peaking facilities, each less than 10 years old. All five facilities sell their output under long-term agreements and are managed by Consolidated Asset Management Services, an ArcLight affiliate. Financial details weren’t disclosed.</p>
<p><span class="boldred">OCI Enterprises</span> acquired <span class="boldred">CornerStone Power Development</span> as part of its new OCI Energy division. CornerStone Power Development, which currently has 12 projects totaling more than 130 MW in development in the United States and Ontario, Canada, will become OCI Solar Power and will be a part of the new OCI Energy division, created to further the company’s global focus on green energy. The company expects to have 700 MW under development by 2013.</p>
<p><span class="boldred">Flex Energy</span> completed its acquisition of <span class="boldred">Ingersoll Rand’s </span>energy systems business, which builds micro turbine systems and recuperators. Sail Venture Partners and RNS Capital Partners are lead investors in FlexEnergy, having participated in both a Series A and Series B offering, and are actively involved in the company at the board level.</p>
<p> </p>
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<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/a123-systems">A123 Systems</a><span class="pur_comma">, </span><a href="/tags/abb">ABB</a><span class="pur_comma">, </span><a href="/tags/aes">AES</a><span class="pur_comma">, </span><a href="/tags/aes-energy-storage">AES Energy Storage</a><span class="pur_comma">, </span><a href="/tags/aes-gener">AES Gener</a><span class="pur_comma">, </span><a href="/tags/alcatel-lucent">Alcatel-Lucent</a><span class="pur_comma">, </span><a href="/tags/alvarion">Alvarion</a><span class="pur_comma">, </span><a href="/tags/ami">AMI</a><span class="pur_comma">, </span><a href="/tags/analytics">Analytics</a><span class="pur_comma">, </span><a href="/tags/angamos">Angamos</a><span class="pur_comma">, </span><a href="/tags/arclight-capital">ArcLight Capital</a><span class="pur_comma">, </span><a href="/tags/arclight-capital-partners">ArcLight Capital Partners</a><span class="pur_comma">, </span><a href="/tags/autodesk">Autodesk</a><span class="pur_comma">, </span><a href="/tags/bpl-global">BPL Global</a><span class="pur_comma">, </span><a href="/tags/bradley-p-forst">Bradley P. Forst</a><span class="pur_comma">, </span><a href="/tags/breezemax">BreezeMAX</a><span class="pur_comma">, </span><a href="/tags/calico-energy-services">Calico Energy Services</a><span class="pur_comma">, </span><a href="/tags/california-public-utilities-commission">California Public Utilities Commission</a><span class="pur_comma">, </span><a href="/tags/central-maine-power">Central Maine Power</a><span class="pur_comma">, </span><a href="/tags/cimarron-solar-facility">Cimarron Solar Facility</a><span class="pur_comma">, </span><a href="/tags/cisco">Cisco</a><span class="pur_comma">, </span><a href="/tags/cmp">CMP</a><span class="pur_comma">, </span><a href="/tags/coalition-warfare-program">Coalition Warfare Program</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/communication">Communication</a><span class="pur_comma">, </span><a href="/tags/conservation">Conservation</a><span class="pur_comma">, </span><a href="/tags/conservation-services-group">Conservation Services Group</a><span class="pur_comma">, </span><a href="/tags/constellat">Constellat</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/constellation-energy">Constellation Energy</a><span class="pur_comma">, </span><a href="/tags/cooper-power-systems">Cooper Power Systems</a><span class="pur_comma">, </span><a href="/tags/cornerstone-power-development">CornerStone Power Development</a><span class="pur_comma">, </span><a href="/tags/cpuc">CPUC</a><span class="pur_comma">, </span><a href="/tags/cupertino-electric">Cupertino Electric</a><span class="pur_comma">, </span><a href="/tags/customeriq">CustomerIQ</a><span class="pur_comma">, </span><a href="/tags/dc">DC</a><span class="pur_comma">, </span><a href="/tags/department-energy">Department of Energy</a><span class="pur_comma">, </span><a href="/tags/dg">DG</a><span class="pur_comma">, </span><a href="/tags/dms">DMS</a><span class="pur_comma">, </span><a href="/tags/donald-w-reilly">Donald W. Reilly</a><span class="pur_comma">, </span><a href="/tags/duke-energy">Duke Energy</a><span class="pur_comma">, </span><a href="/tags/electric-power-research">Electric Power Research</a><span class="pur_comma">, </span><a href="/tags/electric-power-research-institute">Electric Power Research Institute</a><span class="pur_comma">, </span><a href="/tags/electric-power-research-institute-epri">Electric Power Research Institute (EPRI)</a><span class="pur_comma">, </span><a href="/tags/electric-reliability-council-texas">Electric Reliability Council of Texas</a><span class="pur_comma">, </span><a href="/tags/electric-reliability-council-texas-ercot">Electric Reliability Council of Texas (ERCOT)</a><span class="pur_comma">, </span><a href="/tags/elster">Elster</a><span class="pur_comma">, </span><a href="/tags/energy-systems-network">Energy Systems Network</a><span class="pur_comma">, </span><a href="/tags/energyaxis-0">EnergyAxis</a><span class="pur_comma">, </span><a href="/tags/entergy">Entergy</a><span class="pur_comma">, </span><a href="/tags/entergy-new-orleans">Entergy New Orleans</a><span class="pur_comma">, </span><a href="/tags/epri">EPRI</a><span class="pur_comma">, </span><a href="/tags/ercot">ERCOT</a><span class="pur_comma">, </span><a href="/tags/eric-wachsman">Eric Wachsman</a><span class="pur_comma">, </span><a href="/tags/ev">EV</a><span class="pur_comma">, </span><a href="/tags/evergreen-solar">Evergreen Solar</a><span class="pur_comma">, </span><a href="/tags/evs">EVs</a><span class="pur_comma">, </span><a href="/tags/federal-prison-industries-fpi">Federal Prison Industries (FPI)</a><span class="pur_comma">, </span><a href="/tags/first-solar">First Solar</a><span class="pur_comma">, </span><a href="/tags/flex-energy">Flex Energy</a><span class="pur_comma">, </span><a href="/tags/flexenergy">FlexEnergy</a><span class="pur_comma">, </span><a href="/tags/flexnet-ami-system">FlexNet AMI system</a><span class="pur_comma">, </span><a href="/tags/focus-electric">Focus Electric</a><span class="pur_comma">, </span><a href="/tags/ford">Ford</a><span class="pur_comma">, </span><a href="/tags/ford-motor-co">Ford Motor Co.</a><span class="pur_comma">, </span><a href="/tags/fotowatio-renewable-ventures">Fotowatio Renewable Ventures</a><span class="pur_comma">, </span><a href="/tags/ge">GE</a><span class="pur_comma">, </span><a href="/tags/ge-energy-financial">GE Energy Financial</a><span class="pur_comma">, </span><a href="/tags/ge-energy-financial-services">GE Energy Financial Services</a><span class="pur_comma">, </span><a href="/tags/george-ashton">George Ashton</a><span class="pur_comma">, </span><a href="/tags/government-singapore-investment-corp">Government of Singapore Investment Corp.</a><span class="pur_comma">, </span><a href="/tags/greenco-solutions">GreenCo Solutions</a><span class="pur_comma">, </span><a href="/tags/gridcom">GridCom</a><span class="pur_comma">, </span><a href="/tags/imperial-valley">Imperial Valley</a><span class="pur_comma">, </span><a href="/tags/ingersoll-rand">Ingersoll Rand</a><span class="pur_comma">, </span><a href="/tags/iso">ISO</a><span class="pur_comma">, </span><a href="/tags/janja-lupse">Janja Lupse</a><span class="pur_comma">, </span><a href="/tags/john-curcio">John Curcio</a><span class="pur_comma">, </span><a href="/tags/maryland-clean-energy-center">Maryland Clean Energy Center</a><span class="pur_comma">, </span><a href="/tags/mesquite">Mesquite</a><span class="pur_comma">, </span><a href="/tags/mesquite-solar-1">Mesquite Solar 1</a><span class="pur_comma">, </span><a href="/tags/microsoft">Microsoft</a><span class="pur_comma">, </span><a href="/tags/midwest-iso">Midwest ISO</a><span class="pur_comma">, </span><a href="/tags/modesto-irrigation-district">Modesto Irrigation District</a><span class="pur_comma">, </span><a href="/tags/murfreesboro-solar-project">Murfreesboro Solar Project</a><span class="pur_comma">, </span><a href="/tags/myford-mobile">MyFord Mobile</a><span class="pur_comma">, </span><a href="/tags/myford-touch">MyFord Touch</a><span class="pur_comma">, </span><a href="/tags/network">Network</a><span class="pur_comma">, </span><a href="/tags/new-jersey">New Jersey</a><span class="pur_comma">, </span><a href="/tags/newenergy">NewEnergy</a><span class="pur_comma">, </span><a href="/tags/north-carolina-electric-membership-corp-0">North Carolina Electric Membership Corp.</a><span class="pur_comma">, </span><a href="/tags/oci-enterprises-0">OCI Enterprises</a><span class="pur_comma">, </span><a href="/tags/ocotillo-wind-energy-facility">Ocotillo Wind Energy Facility</a><span class="pur_comma">, </span><a href="/tags/open-systems-international">Open Systems International</a><span class="pur_comma">, </span><a href="/tags/open-systems-international-osi">Open Systems International (OSI)</a><span class="pur_comma">, </span><a href="/tags/ot">OT</a><span class="pur_comma">, </span><a href="/tags/pattern-energy">Pattern Energy</a><span class="pur_comma">, </span><a href="/tags/paul-aggarwal">Paul Aggarwal</a><span class="pur_comma">, </span><a href="/tags/pepco-energy-services">Pepco Energy Services</a><span class="pur_comma">, </span><a href="/tags/pete-londa">Pete Londa</a><span class="pur_comma">, </span><a href="/tags/pev">PEV</a><span class="pur_comma">, </span><a href="/tags/plug-electric-vehicles-pev">plug-in electric vehicles (PEV)</a><span class="pur_comma">, </span><a href="/tags/ppl">PPL</a><span class="pur_comma">, </span><a href="/tags/ppl-electric-utilities-0">PPL Electric Utilities</a><span class="pur_comma">, </span><a href="/tags/project-plug">Project Plug-IN</a><span class="pur_comma">, </span><a href="/tags/pv">PV</a><span class="pur_comma">, </span><a href="/tags/rec">REC</a><span class="pur_comma">, </span><a href="/tags/reliability">Reliability</a><span class="pur_comma">, </span><a href="/tags/renewable">Renewable</a><span class="pur_comma">, </span><a href="/tags/renewable-energy">Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/ronald-moe">Ronald Moe</a><span class="pur_comma">, </span><a href="/tags/sae-international">SAE International</a><span class="pur_comma">, </span><a href="/tags/saic">SAIC</a><span class="pur_comma">, </span><a href="/tags/sce">SCE</a><span class="pur_comma">, </span><a href="/tags/schneider">Schneider</a><span class="pur_comma">, </span><a href="/tags/sempra">Sempra</a><span class="pur_comma">, </span><a href="/tags/sempra-generation">Sempra Generation</a><span class="pur_comma">, </span><a href="/tags/sensus">Sensus</a><span class="pur_comma">, </span><a href="/tags/siemens">Siemens</a><span class="pur_comma">, </span><a href="/tags/siemens-spectrum-power">Siemens Spectrum Power</a><span class="pur_comma">, </span><a href="/tags/silver-spring-networks-0">Silver Spring Networks</a><span class="pur_comma">, </span><a href="/tags/singapore-investment-corp">Singapore Investment Corp.</a><span class="pur_comma">, </span><a href="/tags/solar">Solar</a><span class="pur_comma">, </span><a href="/tags/solar-panels">solar panels</a><span class="pur_comma">, </span><a href="/tags/southern-california-edison">Southern California Edison</a><span class="pur_comma">, </span><a href="/tags/southern-california-edison-sce">Southern California Edison (SCE)</a><span class="pur_comma">, </span><a href="/tags/southern-company">Southern Company</a><span class="pur_comma">, </span><a href="/tags/southwest-solar-technologies">Southwest Solar Technologies</a><span class="pur_comma">, </span><a href="/tags/spectrum-power">Spectrum Power</a><span class="pur_comma">, </span><a href="/tags/spinning-reserve">spinning reserve</a><span class="pur_comma">, </span><a href="/tags/springer-electric-cooperative">Springer Electric Cooperative</a><span class="pur_comma">, </span><a href="/tags/storage">storage</a><span class="pur_comma">, </span><a href="/tags/sunpower">SunPower</a><span class="pur_comma">, </span><a href="/tags/sunpower-corp">SunPower Corp.</a><span class="pur_comma">, </span><a href="/tags/suntech-power">Suntech Power</a><span class="pur_comma">, </span><a href="/tags/suntech-power-holdings">Suntech Power Holdings</a><span class="pur_comma">, </span><a href="/tags/ted-turner">Ted Turner</a><span class="pur_comma">, </span><a href="/tags/tennessee-valley-authority-0">Tennessee Valley Authority</a><span class="pur_comma">, </span><a href="/tags/think">THINK</a><span class="pur_comma">, </span><a href="/tags/transmission">Transmission</a><span class="pur_comma">, </span><a href="/tags/trc">TRC</a><span class="pur_comma">, </span><a href="/tags/trc-companies">TRC Companies</a><span class="pur_comma">, </span><a href="/tags/tropos-networks">Tropos Networks</a><span class="pur_comma">, </span><a href="/tags/turner-renewable-energy">Turner Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/tva">TVA</a><span class="pur_comma">, </span><a href="/tags/us-department-energy">U.S. Department of Energy</a><span class="pur_comma">, </span><a href="/tags/ultracell">UltraCell</a><span class="pur_comma">, </span><a href="/tags/v2g">V2G</a><span class="pur_comma">, </span><a href="/tags/vehicle-grid-v2g">vehicle to grid (V2G)</a><span class="pur_comma">, </span><a href="/tags/verizon">Verizon</a><span class="pur_comma">, </span><a href="/tags/virtuwatt-0">VirtuWatt</a><span class="pur_comma">, </span><a href="/tags/wind">Wind</a><span class="pur_comma">, </span><a href="/tags/zbb-energy">ZBB Energy</a><span class="pur_comma">, </span><a href="/tags/zess-50">ZESS 50</a><span class="pur_comma">, </span><a href="/tags/zess-powr-pecc">ZESS POWR PECC</a><span class="pur_comma">, </span><a href="/tags/zigbee">Zigbee</a><span class="pur_comma">, </span><a href="/tags/zigbee-alliance">Zigbee Alliance</a> </div>
</div>
Tue, 01 Mar 2011 05:00:00 +0000puradmin14123 at https://www.fortnightly.comVendor Neutralhttps://www.fortnightly.com/fortnightly/2011/02/vendor-neutral
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">Vendor Neutral</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - February 2011</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/1102-VENpic1.jpg" width="1500" height="1120" alt="After successfully completing demonstration testing, Verdant Power filed for FERC approval to install 30 tidal power turbines in the East River. (Source: Kris Unger/Verdant Power)" title="After successfully completing demonstration testing, Verdant Power filed for FERC approval to install 30 tidal power turbines in the East River. (Source: Kris Unger/Verdant Power)" /></div><div class="field-item odd"><img src="https://www.fortnightly.com/sites/default/files/1102-VENpic2.jpg" width="900" height="1500" alt="San Diego County for the first time approved a vertical axis wind turbine, a WePOWER 3.4 kW Falcon turbine, installed on private property by Joe Moore Construction. (Source: WePOWER)" title="San Diego County for the first time approved a vertical axis wind turbine, a WePOWER 3.4 kW Falcon turbine, installed on private property by Joe Moore Construction. (Source: WePOWER)" /></div><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/1102-VENpic3.jpg" width="1500" height="697" alt="Silent Power&#039;s OnDemand battery systems provide distributed storage for centralized renewable generation." title="Silent Power&#039;s OnDemand battery systems provide distributed storage for centralized renewable generation." /></div><div class="field-item odd"><img src="https://www.fortnightly.com/sites/default/files/1102-VENpic4.jpg" width="1500" height="1000" alt="Hydro-Québec took delivery of the first five of 50 Mitsubishi i-MiEV electric vehicles, as part of its EV performance testing project." title="Hydro-Québec took delivery of the first five of 50 Mitsubishi i-MiEV electric vehicles, as part of its EV performance testing project." /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><h4><b>Generation</b></h4>
<p>New York-based <span class="boldred">Verdant Power</span> filed an application with the <span class="boldred">Federal Energy Regulatory Commission (FERC)</span> that would allow the company to install up to 30 new tidal power turbines in the East Channel of the East River in New York. If approved, the Roosevelt Island Tidal Energy (RITE) project would be the first tidal power plant in the United States licensed to transmit energy onto the grid. Verdant Power’s Free Flow kinetic hydropower system uses three-bladed turbines deployed in fast-moving tides and rivers to generate clean energy.</p>
<p><span class="boldred">ABB</span> supplied mechanical, electrical, and automation equipment for Yukon Energy Corp.’s Mayo B hydroelectric project, located on the Mayo River, in the Yukon, Canada. ABB is executing the project as part of a strategic alliance with Chongqing Yunhe Hydropower Group, one of the world’s leading turbine suppliers in the small hydro market, and will be providing the turbines and generators. ABB will supply the excitation system, governor system, and various mechanical and electrical auxiliaries for this equipment. In addition, ABB will provide required site services to ensure the project is operational by the end of 2011</p>
<p><span class="boldred">San Diego County</span> for the first time approved a vertical axis wind turbine. The 3.4 kW Falcon turbine from WePOWER was installed on an 18’ pole on private property by Joe Moore Construction, an authorized WePOWER dealer. Testing and certification organization TUV SUD America inspected and approved the job.</p>
<p><span class="boldred">Abengoa Solar</span> finalized a $1.45 billion financing to build Solana, the world’s largest parabolic trough concentrating solar plant. This plant, with a total investment of approximately $2 billion, will generate 250 MW. Following the conditional commitment announced by President Obama last July, the Department of Energy issued a loan guarantee to support the project. The facility will sell power to Arizona Public Service under a 30-year agreement.</p>
<p><span class="boldred">The California Public Utilities Commission (CPUC)</span> moved to implement <span class="boldred">Pacific Gas and Electric’s (PG&amp;E)</span> solar PV program, which the CPUC adopted in April 2010. PG&amp;E’s five-year solar PV program will facilitate the development of 500 MW of solar PV facilities in the range of one to 20 MW in PG&amp;E’s service area. Under the program, PG&amp;E is authorized to hold competitive solicitations for approximately 50 MW per year and to execute contracts with independent power producers for 250 MW during the course of the program.</p>
<p><span class="boldred">SunPower</span> signed three power purchase agreements with <span class="boldred">Southern California Edison (SCE)</span> totaling 711 MW. SunPower will install its Oasis modular solar technology at sites in Rosamond and Los Banos, Calif. Engineered to optimize use of available land, each SunPower Oasis power block uses 425 watt solar panels and tracking systems.</p>
<p><span class="boldred">The Department of Energy</span> finalized a partial loan guarantee for $1.3 billion to support the world’s largest wind project. The loan will finance the <span class="boldred">Caithness Shepherds Flat</span> project, an 845 MW wind generation facility located in eastern Oregon sponsored by Caithness Energy and GE Energy Financial Services. The Caithness Shepherds Flat wind project will be the first in North America to use 338 GE 2.5xl wind turbines, which have been used in Europe and Asia. Once completed, the project will sell its power output and renewable energy credits to Southern California Edison under 20-year fixed price agreements.</p>
<p><span class="boldred">Fotowatio Renewable Ventures</span>, an independent power producer, signed power purchase agreements for four PV projects with <span class="boldred">Southern California Edison (SCE)</span> totaling 120 MW. FRV plans to finance, develop, construct, own and operate the facilities, with startup in 2013. The PPAs include one 60 MW and two 20 MW installations in Kern County, and one 20 MW installation in Los Angeles County. The projects will connect with existing transmission lines.</p>
<p><span class="boldred">Hawaiian Electric Co.</span>, subsidiary of Hawaiian Electric Industries, signed a contract for a local company, <span class="boldred">Aina Koa Pono</span>, to provide sustainable, locally grown and processed biofuel for electric generation in Hawaii. With planned operations in the Ka’u region of Hawaii Island, the project will initially supply biofuel to Keahole power plant. The project complements Hawaiian Electric’s plans for adding significant amounts of renewable energy from other sources, including solar, wind, waste-to-energy, biomass, geothermal, ocean and others. Subject to approval by the Public Utilities Commission, with input from the consumer advocate, the contract would initiate an innovative plan to provide economic support to Hawaii Island customers while encouraging more renewable energy statewide.</p>
<p><span class="boldred">Iberdrola Renewables</span> sold the output of its 100 MW New Harvest wind power project, now being built in Iowa, to Commonwealth Edison (ComEd) and Ameren Illinois. Under 20-year contracts, Iberdrola will provide roughly equal amounts of output to both utilities, beginning June 1, 2012. Iberdrola Renewables will own the New Harvest project, which it’s building in Crawford County, Iowa, on farm land new Schleswig. New Harvest will use 50 Gamesa G87 wind turbines.</p>
<p>The <span class="boldred">Illinois Commerce Commission (ICC)</span> approved long-term power purchase agreements between <span class="boldred">Invenergy</span> and utilities <span class="boldred">ComEd</span> and <span class="boldred">Ameren Illinois</span>. Invenergy plans to build two facilities to deliver wind and solar power under the agreements. The new Bishop Hill II wind project in Henry County will provide power to Ameren Illinois, and a yet-to-be-named PV facility in Illinois will generate solar energy for ComEd. Invenergy’s existing Grand Ridge IV wind farm in LaSalle County will generate wind power for ComEd.</p>
<p><span class="boldred">CPV Renewable Energy</span>, an affiliate of Competitive Power Ventures, completed construction and testing of its 152 MW (MW) Keenan II wind farm in Oklahoma, and the project is now delivering energy into the electric grid. Located on approximately 8,000 acres 12 miles southwest of Woodward, Okla., the project is the second phase of a multi-phased wind generation project with a total build-out potential exceeding 350 MW. CPV developed and sold the 101 MW Keenan I wind farm to Oklahoma Gas &amp; Electric (OG&amp;E) in September 2008. The Keenan II project sells power under a 20-year power purchase agreement with OG&amp;E. In addition to CPV, the wind farm is co-owned by GE Energy Financial Services and Tyr Keenan II, an indirect subsidiary of ITOCHU Corp.</p>
<p><span class="boldred">NorthWestern Energy</span> signed a memorandum of understanding to purchase a 25 MW wind project in central Montana to be developed by <span class="boldred">Compass Wind</span>. The project, which was submitted to NorthWestern in response to a 2009 community renewable resource solicitation, is consistent with recent Montana legislation that provides for the reintegration of the unbundled utility. The Spion Kop wind project is intended to be placed into the Montana utility’s rate base with both the energy and associated renewable energy credits used to meet future renewable portfolio standards obligations.</p>
<p><span class="boldred">Sustainable Energy Capital Partners (SECP)</span>, a California-based developer of renewable energy projects, created a joint venture with <span class="boldred">POSCO Power</span> to develop and build a 300 MW photovoltaic solar power plant in Boulder City, Nev. SECP has invested in more than 400 MW of solar projects in the southwestern United States. For POSCO Power, the largest independent power producer in South Korea, it represents the first overseas renewable energy project developed without the involvement of parent company POSCO.</p>
<p><b>Transmission </b></p>
<p><span class="boldred">Exelon Nuclear</span> awarded <span class="boldred">Doble Engineering</span> a multi-year contract for transformer-related consulting services. Exelon, which operates the largest nuclear fleet in the United States and the third largest fleet in the world, is investing in the future of its nuclear energy facilities through a decade-long transformer replacement project. As part of this proactive replacement project, Exelon Nuclear commissioned Doble’s team of transformer experts to oversee its transformer design review and witness the manufacturing and testing of its transformers; this includes the continuous monitoring of the construction process. In addition to the work on these new transformers, Doble will continue to support Exelon Nuclear at its various stations, providing testing, root cause analysis, and other technical support.</p>
<p><span class="boldred">PSEG Fossil</span>, a subsidiary of the Public Service Enterprise Group (PSEG), selected <span class="boldred">ABB</span> to supply its Hudson generating station in Jersey City, N.J., with a multi-phase controls project including: operator console upgrades, existing plant controls upgrades and new controls. The multi-phase award includes an upgrade to the Hudson Unit 2 control systems equipment to refurbish it for an additional 20 years of service. The existing distributed control system (DCS) is a mix of the Bailey Network 90 and INFI 90 systems and will be upgraded to be compatible with the new DCS equipment being installed as a part of the BET project.</p>
<p><span class="boldred">ABB</span> won orders worth approximately $580 million from Svenska Kraftnät of Sweden and LITGRID Turtas AB of Lithuania to supply a new power transmission link between the Nordic and Baltic regions. ABB will deliver a high-voltage direct current (HVDC) transmission system comprising two converter stations and cable to transmit 700 MW of electricity with minimum losses across a distance of more than 400 km. ABB will design, engineer, supply and commission two 700 MW converter stations using ABB’s HVDC Light technology, one in Nybro, Sweden, the other in Klaipeda, Lithuania. The order also includes the supply and installation of two 300 kV underwater cables, each 400 km long, and land cables of the same voltage in Sweden and Lithuania.</p>
<p><b>M&amp;A </b></p>
<p><span class="boldred">Silent Power</span> sold $2 million of Series A preferred stock. England Securities served as exclusive financial advisor to Silent Power, which provides turn-key energy storage solutions, especially for integrating renewable energy and electric vehicle charging systems into utilities’ distribution systems and on customer premises. This round of financing will support the commercial deployment of Silent Power’s OnDemand energy storage systems and expand its distribution into new markets.</p>
<p><span class="boldred">Atlantic Power</span> closed its previously announced acquisition of <span class="boldred">Cadillac Renewable Energy</span>, a 39.6 MW wood fired facility located in Cadillac, Mich. The purchase price was $77 million, plus customary working capital adjustments, and was funded by $34 million of cash on hand and $43 million of assumed non-recourse, project-level debt. The assumed non-recourse debt amortizes fully over the term of the power purchase agreement. Operations and maintenance will be managed by Rollcast Energy, Atlantic Power’s majority-owned affiliate. The company expects to receive distributions from the project in the range of $3.5 million to $4.5 million per year, starting in 2011.</p>
<p>Taiwan-based <span class="boldred">UMC Capital</span>, the corporate venture arm of leading semiconductor foundry United Microelectronics Corp (UMC), invested in <span class="boldred">Trilliant</span>. UMC Capital joins Investor Growth Capital, VangtagePoint Venture Partners, ABB and GE in Trilliant’s latest round of financing. Trilliant also announced plans to open a corporate office for the Asia Pacific market. Along with the investment, UMC will be assisting Trilliant with the company’s planned market expansion.</p>
<p><span class="boldred">Blue Castle Holdings</span>, a developer of a proposed new nuclear power plant project in Green River, Utah, acquired 100 percent of <span class="boldred">Willow Creek Companies (WCC)</span>. WCC is primarily engaged in the construction, replacement and repair of natural gas pipelines, crude oil pipelines, storage facilities and civil site work in Colorado, Utah, Wyoming, North Dakota and New Mexico. Willow Creek Companies will now operate as Willow Creek LLC, a wholly owned subsidiary of Blue Castle Holdings. Terms of the transaction weren’t disclosed.</p>
<p><span class="boldred">Navigant</span> acquired BTM Consult, a forecaster and data source for the international wind industry. BTM Consult provides wind market assessments, business development assessments and due diligence investigations.</p>
<p><span class="boldred">GE Intelligent Platforms</span> acquired <span class="boldred">SmartSignal</span>, a privately-held analytics software company based in Lisle, Ill. SmartSignal specializes in providing remote monitoring and diagnostics solutions to the power generation, oil &amp; gas and other industrial sectors. The company’s software and monitoring services are used to anticipate, prevent, and avoid equipment failure, by detecting and identifying abnormal equipment behavior and providing exception-based notifications of developing problems along with diagnoses and prioritizations. The company’s systems are found on equipment from GE, Siemens, Rolls Royce, Alstom, Flowserve, Waukesha, Byron Jackson, Cooper-Bessemer, and other companies.</p>
<p><b>People </b></p>
<p><span class="boldred">Dr. Steven R. Specker</span> was appointed to <span class="boldred">Trilliant Inc.</span>’s board of directors. Dr. Specker most recently served as President and CEO of the Electric Power Research Institute (EPRI) in from 2004 to 2010.</p>
<p><span class="boldred">Energate</span>, a provider of home energy management and residential demand response solutions, named <span class="boldred">Lori Reslock</span> vice president of marketing. Lori will be responsible for corporate marketing and communications, channel partnerships, and sales support. Prior to joining Energate, Ms. Reslock was vice president of marketing at CURRENT Group, where she worked with utilities across North America and Europe.</p>
<p><span class="boldred">Geosyntec</span> added Andrew Goldberg and Anica Haynes to its Baton Rouge, La., office. Goldberg and Haynes bring experience in securing regulatory authorizations for new and existing energy facilities, including pipelines and natural gas storage facilities, electric power generation and transmission, and alternative energy facilities. They specialize in the development and comprehensive environmental permitting of gas storage and pipeline projects.</p>
<p><b>Metering </b></p>
<p><span class="boldred">Silicon Valley Power (SVP)</span>, the City of Santa Clara’s municipal electric utility, selected <span class="boldred">Elster</span>’s EnergyAxis Smart Grid solution for deployment across its service area. As part of the SVP Meter Connect program, EnergyAxis will provide AMI for businesses and residents of Santa Clara. Tropos Networks will provide the infrastructure for backhaul transfer of the data collected and managed by EnergyAxis. </p>
<p><span class="boldred">PECO</span>, a subsidiary of Exelon Corp., signed a contract to purchase and deploy of the <span class="boldred">Sensus</span> FlexNet advanced metering infrastructure (AMI) communications network and smart meters for more than 1.6 million customers over the next 10 years. PECO expects the investment to serve its outage management, distribution automation and voltage monitoring applications. Sensus says the FlexNet technology will give PECO clear and reliable communications in a dense urban environment via FCC-licensed spectrum and will support future smart grid applications.</p>
<p><span class="boldred">Itron and Silver Spring Networks</span> finalized an expanded agreement to integrate Itron’s Centron II electricity meters, 100G gas ERT modules and 100W water ERT modules with Silver Spring’s smart energy platform. Under the terms of the agreement, the companies have addressed the technical, functional and solution delivery issues required to deliver a multi-vendor advanced metering solution for gas, water and electricity providers. This further extends the company’s existing agreement that provides for compatibility of the Itron CENTRON I electricity meter with the Silver Spring platform.</p>
<p><b>Smart Grid </b></p>
<p><span class="boldred">Survalent Technology</span> commissioned a new SCADA system for <span class="boldred">City of Opelika Light and Power</span>. The new system features Survalent’s dual-redundant open-architecture system based on Windows Server 2008, and includes several of Survalent’s open system applications.</p>
<p><span class="boldred">AT&amp;T</span> and <span class="boldred">Elster</span> signed a new agreement that will enable comprehensive end-to-end wireless solutions for utilities. The combined offering enables utilities to integrate distribution area networking from AT&amp;T’s high speed, cellular data network with Elster’s Energy Axis AMI solution.</p>
<p>The <span class="boldred">Demand Response and Smart Grid Coalition (DRSG) </span>added six new members: Intel, Ingersoll Rand, Siemens, Schneider Electric, UISOL, and Constellation NewEnergy. DRSG is the trade association for companies that provide products and services in the areas of demand response and smart grid technologies and practices. DRSG works to educate and provide information to policymakers, utilities, consumers, and other key stakeholders to support efforts aimed at modernizing the electricity system and introducing smart grid practices.</p>
<p><span class="boldred">Trilliant</span> completed its pilot and was selected to implement the smart metering communications infrastructure at Burbank Water and Power (BWP). BWP, a recipient of an <i>American Reinvestment and Recovery Act</i> (ARRA) grant, deployed about 1,000 commercial and residential meters during Phase I of its smart grid pilot program. As part of the initial deployment, all of BWP’s customers using 250 kW and above were converted to time-of-use rates.</p>
<p><b>EVs &amp; Storage </b></p>
<p>The first five all-electric Mitsubishi i-MiEVs have arrived in Boucherville, according to <span class="boldred">Hydro-Québec</span> and <span class="boldred">Mitsubishi Motor Sales of Canada (MMSCAN)</span>. Hydro-Québec will be leading the road tests that aim to evaluate the performance of up to 50 electric vehicles under a variety of circumstances, notably winter conditions. The project, was announced at the Montreal International Auto Show in 2010, is designed to study users’ charging habits, driving experience and overall satisfaction as well as vehicle behavior when interfaced with the electric grid.</p>
<p><span class="boldred">AES Energy Storage</span> began operation of an 8 MW battery-based storage system located in Johnson City, N.Y. AES says the project, which is designed to level the variability of generation and demand on the grid in the New York power market by delivering instantaneous response to grid operator requests for power, is the first of its kind in the United States. Upon its anticipated completion in 2011, the project will supply 20 MW of emissions-free reserve capacity. On Dec. 31, 2010, the project completed its initial performance testing with the New York Independent System Operator (NYISO) and is operating as a frequency regulation provider, delivering reserve capacity that helps grid operators maintain the balance between generation and load.</p>
<p> </p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/generation-markets">Generation &amp; Markets</a></li><li class="taxonomy-term-reference-1"><a href="/article-categories/td-grid">T&amp;D Grid</a></li><li class="taxonomy-term-reference-2"><a href="/article-categories/finance">Finance</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/vendor-neutral">Vendor Neutral</a></li></ul></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/abb">ABB</a><span class="pur_comma">, </span><a href="/tags/abengoa-solar">Abengoa Solar</a><span class="pur_comma">, </span><a href="/tags/aes">AES</a><span class="pur_comma">, </span><a href="/tags/aes-energy-storage">AES Energy Storage</a><span class="pur_comma">, </span><a href="/tags/aina-koa-pono">Aina Koa Pono</a><span class="pur_comma">, </span><a href="/tags/alstom">Alstom</a><span class="pur_comma">, </span><a href="/tags/ameren">Ameren</a><span class="pur_comma">, </span><a href="/tags/ameren-illinois">Ameren Illinois</a><span class="pur_comma">, </span><a href="/tags/american-reinvestment-and-recovery-act">American Reinvestment and Recovery Act</a><span class="pur_comma">, </span><a href="/tags/ami">AMI</a><span class="pur_comma">, </span><a href="/tags/andrew-goldberg">Andrew Goldberg</a><span class="pur_comma">, </span><a href="/tags/anica-haynes">Anica Haynes</a><span class="pur_comma">, </span><a href="/tags/arizona-public-service">Arizona Public Service</a><span class="pur_comma">, </span><a href="/tags/arra">ARRA</a><span class="pur_comma">, </span><a href="/tags/atlantic-power">Atlantic Power</a><span class="pur_comma">, </span><a href="/tags/blue-castle-holdings">Blue Castle Holdings</a><span class="pur_comma">, </span><a href="/tags/cadillac-renewable-energy">Cadillac Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/caithness">Caithness</a><span class="pur_comma">, </span><a href="/tags/caithness-energy">Caithness Energy</a><span class="pur_comma">, </span><a href="/tags/caithness-shepherds-flat">Caithness Shepherds Flat</a><span class="pur_comma">, </span><a href="/tags/california-public-utilities-commission">California Public Utilities Commission</a><span class="pur_comma">, </span><a href="/tags/chongqing-yunhe-hydropower">Chongqing Yunhe Hydropower</a><span class="pur_comma">, </span><a href="/tags/city-opelika-light-and-power">City of Opelika Light and Power</a><span class="pur_comma">, </span><a href="/tags/city-santa-clara">City of Santa Clara</a><span class="pur_comma">, </span><a href="/tags/comed">ComEd</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/compass-wind">Compass Wind</a><span class="pur_comma">, </span><a href="/tags/competitive-power-ventures">Competitive Power Ventures</a><span class="pur_comma">, </span><a href="/tags/constellat">Constellat</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/cpuc">CPUC</a><span class="pur_comma">, </span><a href="/tags/cpv">CPV</a><span class="pur_comma">, </span><a href="/tags/cpv-renewable-energy">CPV Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/dc">DC</a><span class="pur_comma">, </span><a href="/tags/demand-response-and-smart-grid-coalition">Demand Response and Smart Grid Coalition</a><span class="pur_comma">, </span><a href="/tags/department-energy">Department of Energy</a><span class="pur_comma">, </span><a href="/tags/dr">DR</a><span class="pur_comma">, </span><a href="/tags/drsg">DRSG</a><span class="pur_comma">, </span><a href="/tags/electric-power-research">Electric Power Research</a><span class="pur_comma">, </span><a href="/tags/electric-power-research-institute">Electric Power Research Institute</a><span class="pur_comma">, </span><a href="/tags/electric-power-research-institute-epri">Electric Power Research Institute (EPRI)</a><span class="pur_comma">, </span><a href="/tags/elster">Elster</a><span class="pur_comma">, </span><a href="/tags/energate">Energate</a><span class="pur_comma">, </span><a href="/tags/energyaxis-0">EnergyAxis</a><span class="pur_comma">, </span><a href="/tags/epri">EPRI</a><span class="pur_comma">, </span><a href="/tags/ev">EV</a><span class="pur_comma">, </span><a href="/tags/evs">EVs</a><span class="pur_comma">, </span><a href="/tags/exelon">Exelon</a><span class="pur_comma">, </span><a href="/tags/fcc">FCC</a><span class="pur_comma">, </span><a href="/tags/federal-energy-regulatory-commission">Federal Energy Regulatory Commission</a><span class="pur_comma">, </span><a href="/tags/federal-energy-regulatory-commission-ferc">Federal Energy Regulatory Commission (FERC)</a><span class="pur_comma">, </span><a href="/tags/ferc">FERC</a><span class="pur_comma">, </span><a href="/tags/fotowatio-renewable-ventures">Fotowatio Renewable Ventures</a><span class="pur_comma">, </span><a href="/tags/ge">GE</a><span class="pur_comma">, </span><a href="/tags/ge-energy-financial">GE Energy Financial</a><span class="pur_comma">, </span><a href="/tags/ge-energy-financial-services">GE Energy Financial Services</a><span class="pur_comma">, </span><a href="/tags/ge-intelligent-platforms">GE Intelligent Platforms</a><span class="pur_comma">, </span><a href="/tags/geosyntec">Geosyntec</a><span class="pur_comma">, </span><a href="/tags/hawaiian-electric">Hawaiian Electric</a><span class="pur_comma">, </span><a href="/tags/hawaiian-electric-co">Hawaiian Electric Co</a><span class="pur_comma">, </span><a href="/tags/hawaiian-electric-industries">Hawaiian Electric Industries</a><span class="pur_comma">, </span><a href="/tags/hvdc">HVDC</a><span class="pur_comma">, </span><a href="/tags/hydro">Hydro</a><span class="pur_comma">, </span><a href="/tags/iberdrola-renewables">Iberdrola Renewables</a><span class="pur_comma">, </span><a href="/tags/icc">ICC</a><span class="pur_comma">, </span><a href="/tags/illinois-commerce-commission">Illinois Commerce Commission</a><span class="pur_comma">, </span><a href="/tags/ingersoll-rand">Ingersoll Rand</a><span class="pur_comma">, </span><a href="/tags/invenergy">Invenergy</a><span class="pur_comma">, </span><a href="/tags/iso">ISO</a><span class="pur_comma">, </span><a href="/tags/it">IT</a><span class="pur_comma">, </span><a href="/tags/itochu">ITOCHU</a><span class="pur_comma">, </span><a href="/tags/itron">Itron</a><span class="pur_comma">, </span><a href="/tags/joe-moore-construction">Joe Moore Construction</a><span class="pur_comma">, </span><a href="/tags/johnson-city">Johnson City</a><span class="pur_comma">, </span><a href="/tags/lori-reslock">Lori Reslock</a><span class="pur_comma">, </span><a href="/tags/navigant">Navigant</a><span class="pur_comma">, </span><a href="/tags/network">Network</a><span class="pur_comma">, </span><a href="/tags/new-york-independent-system-operator">New York Independent System Operator</a><span class="pur_comma">, </span><a href="/tags/newenergy">NewEnergy</a><span class="pur_comma">, </span><a href="/tags/northwestern-energy">NorthWestern Energy</a><span class="pur_comma">, </span><a href="/tags/nuclear">Nuclear</a><span class="pur_comma">, </span><a href="/tags/nyiso">NYISO</a><span class="pur_comma">, </span><a href="/tags/pacific-gas-and-electric">Pacific Gas and Electric</a><span class="pur_comma">, </span><a href="/tags/peco">PECO</a><span class="pur_comma">, </span><a href="/tags/posco-power">POSCO Power</a><span class="pur_comma">, </span><a href="/tags/ppa">PPA</a><span class="pur_comma">, </span><a href="/tags/president-obama">President Obama</a><span class="pur_comma">, </span><a href="/tags/public-service-enterprise-group">Public Service Enterprise Group</a><span class="pur_comma">, </span><a href="/tags/pv">PV</a><span class="pur_comma">, </span><a href="/tags/recovery">Recovery</a><span class="pur_comma">, </span><a href="/tags/renewable">Renewable</a><span class="pur_comma">, </span><a href="/tags/renewable-energy">Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/rite">RITE</a><span class="pur_comma">, </span><a href="/tags/rosamond">Rosamond</a><span class="pur_comma">, </span><a href="/tags/san-diego-county">San Diego County</a><span class="pur_comma">, </span><a href="/tags/scada">SCADA</a><span class="pur_comma">, </span><a href="/tags/sce">SCE</a><span class="pur_comma">, </span><a href="/tags/schneider">Schneider</a><span class="pur_comma">, </span><a href="/tags/secp">SECP</a><span class="pur_comma">, </span><a href="/tags/sensus">Sensus</a><span class="pur_comma">, </span><a href="/tags/shepherds-flat">Shepherds Flat</a><span class="pur_comma">, </span><a href="/tags/siemens">Siemens</a><span class="pur_comma">, </span><a href="/tags/silent-power">Silent Power</a><span class="pur_comma">, </span><a href="/tags/silicon">Silicon</a><span class="pur_comma">, </span><a href="/tags/silicon-valley-power">Silicon Valley Power</a><span class="pur_comma">, </span><a href="/tags/silver-spring-networks-0">Silver Spring Networks</a><span class="pur_comma">, </span><a href="/tags/smartsignal">SmartSignal</a><span class="pur_comma">, </span><a href="/tags/solana">Solana</a><span class="pur_comma">, </span><a href="/tags/solar">Solar</a><span class="pur_comma">, </span><a href="/tags/solar-panels">solar panels</a><span class="pur_comma">, </span><a href="/tags/southern-california-edison">Southern California Edison</a><span class="pur_comma">, </span><a href="/tags/southern-california-edison-sce">Southern California Edison (SCE)</a><span class="pur_comma">, </span><a href="/tags/storage">storage</a><span class="pur_comma">, </span><a href="/tags/sunpower">SunPower</a><span class="pur_comma">, </span><a href="/tags/survalent-technology">Survalent Technology</a><span class="pur_comma">, </span><a href="/tags/sustainable-energy-capital-partners">Sustainable Energy Capital Partners</a><span class="pur_comma">, </span><a href="/tags/svp">SVP</a><span class="pur_comma">, </span><a href="/tags/technology">Technology</a><span class="pur_comma">, </span><a href="/tags/transmission">Transmission</a><span class="pur_comma">, </span><a href="/tags/trilliant">Trilliant</a><span class="pur_comma">, </span><a href="/tags/tropos-networks">Tropos Networks</a><span class="pur_comma">, </span><a href="/tags/tuv-sud-america">TUV SUD America</a><span class="pur_comma">, </span><a href="/tags/uisol">UISOL</a><span class="pur_comma">, </span><a href="/tags/umc-capital">UMC Capital</a><span class="pur_comma">, </span><a href="/tags/verdant-power">Verdant Power</a><span class="pur_comma">, </span><a href="/tags/wcc">WCC</a><span class="pur_comma">, </span><a href="/tags/wepower">WePOWER</a><span class="pur_comma">, </span><a href="/tags/willow-creek-companies">Willow Creek Companies</a><span class="pur_comma">, </span><a href="/tags/wind">Wind</a><span class="pur_comma">, </span><a href="/tags/yukon-energy-corp">Yukon Energy Corp</a> </div>
</div>
Tue, 01 Feb 2011 05:00:00 +0000puradmin14134 at https://www.fortnightly.comPeople (April 2010)https://www.fortnightly.com/fortnightly/2010/04/people-april-2010
<div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - April 2010</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><span class="boldred">New Opportunities: </span><b>MidAmerican Energy Holdings</b> announced the appointment of <b>Michael Dunn</b> as president of PacifiCorp Energy. He was president of MidAmerican subsidiary, Kern River Gas Transmission.</p>
<p><b>NiSource Inc.</b> announced that <b>Jimmy D. Staton</b>, executive v.p. and group CEO of NiSource’s gas distribution business, also will assume the added responsibility of leading the NiSource Indiana utilities, including Northern Indiana Public Service.</p>
<p><b>Vectren </b>chose <b>Carl L. Chapman </b>to serve as CEO. He was president and COO and succeeds the retiring <b>Niel C. Ellerbrook.</b></p>
<p><b>AmerenUE</b> promoted <b>David N. Wakeman</b> to v.p., energy delivery from manager of distribution operating.</p>
<p><b>FirstEnergy</b> named <b>Charles E. Jones </b>its senior v.p. and president, FirstEnergy Utilities, from senior v.p., energy delivery and customer service. He succeeds the retired <b>Richard R. Rigg.</b></p>
<p><b>Constellation Energy</b> named <b>Michael D. Smith </b>as senior v.p. of retail green initiatives for Constellation NewEnergy. He was v.p. and director of Constellation’s international energy police office in London.</p>
<p><b>NV Energy</b> announced that <b>E. Kevin Bethel</b>, current chief accounting officer and controller, will serve as interim CFO until a permanent successor is named due to the resignation of <b>William D. Rogers</b> as CFO and treasurer.</p>
<p><b>People’s Natural Gas </b>named <b>Morgan K. O’Brien</b> as CEO. He was CEO of Duquesne Light Holdings. <b>Kenneth M. Johnston </b>is named v.p. of operations of the company, which was Dominion Peoples Gas until an ownership change on February 1.</p>
<p><b>The Empire District Electric Co</b>. promoted <b>Brad Beecher</b> to executive v.p. and COO-electric from v.p. and COO.</p>
<p><b>The National Association of Regulatory Utility Commissioners</b> named <b>Orjiakor Isiogu</b> as co-chair of the NARUC-FERC smart-grid collaborative. He is chairman of the Michigan Public Service Commission. He replaces outgoing co-chair and former NARUC president <b>Frederick Butler of New Jersey</b>. FERC Chairman <b>Jon Wellinghoff</b> is co-chair.</p>
<p><b>Spectra Energy </b>appointed <b>Steven Baker</b>, former v.p. of subsidiary Union Gas, to v.p. and treasurer, Spectra Energy. <b>Allen Capps</b>, v.p. and treasurer, Spectra Energy, will assume Baker’s role of v.p., business development storage and transmission at Union Gas.</p>
<p><b>Electric Power Generation Association</b> hired <b>Jacob G. Smeltz</b> as v.p., legislative and regulatory affairs. He was minority executive director of the Consumer Affairs Committee of the Pennsylvania House of Representatives.</p>
<p><b>The Electric Power Supply Association elected Clarence (Joe) Hopf Jr</b>. as chairman for 2010. Hopf is president of PSEG Energy Resources &amp; Trade. <b>Jack A. Fusco</b>, president and CEO of Calpine, is first vice chairman; <b>Ronald L. Litzinger</b>, president and CEO of Edison Mission Group is second vice chairman; <b>Zin Smati</b>, president and CEO of GDF Suez Energy NA is secretary; and <b>John O’Neal</b>, senior v.p. and CCO of Mirant is treasurer.</p>
<p> </p>
<p><span class="boldred">Boards of Directors: </span><b>Allete </b>announced that <b>Don Shippar</b>, chairman and CEO retired. He will continue as chairman of Allete’s board of directors. He is replaced by <b>Alan Hodnik</b>, formerly president.</p>
<p><b>Chesapeake Utilities</b> appointed <b>John R. Schimkaitis </b>as vice chairman of the board. He continues in his role as CEO. Also appointed to the board is <b>Michael P. McMasters</b>, who will continue as company COO and is promoted to president.</p>
<p><b>Pacific Gas and Electric</b> elected <b>Christopher P. Johns</b> to its board. He currently serves as president.</p>
<p><b>Northeast Utilities </b>elected <b>Dennis R. Wraase</b> as a trustee on its board. He was chairman and CEO of Pepco Holdings, Inc.</p>
<p> </p>
<p><i>We welcome submissions to People, especially those accompanied by a high-resolution color photograph. E-mail to: <a href="mailto:people@pur.com">people@pur.com</a>.</i></p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/people">People</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/people">People</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/1004-cvr.jpg" width="1121" height="1500" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/ameren">Ameren</a><span class="pur_comma">, </span><a href="/tags/brad-beecher">Brad Beecher</a><span class="pur_comma">, </span><a href="/tags/calpine">Calpine</a><span class="pur_comma">, </span><a href="/tags/chesapeake-utilities">Chesapeake Utilities</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/constellat">Constellat</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/constellation-energy">Constellation Energy</a><span class="pur_comma">, </span><a href="/tags/dominion">Dominion</a><span class="pur_comma">, </span><a href="/tags/empire-district-electric">Empire District Electric</a><span class="pur_comma">, </span><a href="/tags/ferc">FERC</a><span class="pur_comma">, </span><a href="/tags/firstenergy">FirstEnergy</a><span class="pur_comma">, </span><a href="/tags/han">HAN</a><span class="pur_comma">, </span><a href="/tags/it">IT</a><span class="pur_comma">, </span><a href="/tags/jon-wellinghof">Jon Wellinghof</a><span class="pur_comma">, </span><a href="/tags/jon-wellinghoff-0">Jon Wellinghoff</a><span class="pur_comma">, </span><a href="/tags/michael-d-smith">Michael D. Smith</a><span class="pur_comma">, </span><a href="/tags/michigan-public-service-commission">Michigan Public Service Commission</a><span class="pur_comma">, </span><a href="/tags/midamerican">MidAmerican</a><span class="pur_comma">, </span><a href="/tags/midamerican-energy">MidAmerican Energy</a><span class="pur_comma">, </span><a href="/tags/midamerican-energy-holdings">MidAmerican Energy Holdings</a><span class="pur_comma">, </span><a href="/tags/naruc">NARUC</a><span class="pur_comma">, </span><a href="/tags/national-association-regulatory-utility-commissioners">National Association of Regulatory Utility Commissioners</a><span class="pur_comma">, </span><a href="/tags/new-jersey">New Jersey</a><span class="pur_comma">, </span><a href="/tags/newenergy">NewEnergy</a><span class="pur_comma">, </span><a href="/tags/nisource">NiSource</a><span class="pur_comma">, </span><a href="/tags/northeast-utilities">Northeast Utilities</a><span class="pur_comma">, </span><a href="/tags/nv-energy">NV Energy</a><span class="pur_comma">, </span><a href="/tags/pacific-gas-and-electric">Pacific Gas and Electric</a><span class="pur_comma">, </span><a href="/tags/pacificorp">PacifiCorp</a><span class="pur_comma">, </span><a href="/tags/peoples-gas">Peoples Gas</a><span class="pur_comma">, </span><a href="/tags/pepco-holdings">Pepco Holdings</a> </div>
</div>
Thu, 01 Apr 2010 04:00:00 +0000meacott14642 at https://www.fortnightly.comPeoplehttps://www.fortnightly.com/fortnightly/2007/03/people
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">People</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - March 2007</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><span class="boldred">New Opportunities: </span><b>Constellation Energy</b> named <b>Kevin W. Hadlock</b> vice president, investor relations, and <b>Robert L. Gould</b> vice president, corporate communications. Subsidiary Constellation NewEnergy also appointed <b>Emily Neill</b> as business development manager. Prior to joining Constellation NewEnergy, Neill oversaw the recruitment and retention for the Greater Boston Chamber of Commerce.</p>
<p><b>Dynegy Inc.</b> announced several organizational changes related to the company’s proposed combination with LS Power. <b>Lynn A. Lednicky</b>, currently executive vice president, strategic planning and corporate business development, was named executive vice president, commercial and development. <b>Jason Hochberg</b>, currently president of LS Power Group, will join Dynegy as executive vice president, strategic planning and corporate business development. <b>Richard W. Eimer</b>, senior vice president, operations, will maintain his responsibility for the operation of the company’s assets on a systemwide basis.</p>
<p><b>Robert W. Best</b>, chairman, president, and CEO of <b>Atmos Energy Corp.</b>, was elected chairman of the American Gas Foundation’s board of trustees for 2007. Best has been the chairman, president, and CEO of Dallas-based Atmos Energy Corp. since March 1997.</p>
<p>The National Association of Regulatory Utility Commissioners (NARUC) re-elected <b>Dr. Edward H. Salmon</b> to serve a sixth term as president of NARUC’s Commissioners Emeritus. Salmon served six years as a state utility regulator and three years as president of the New Jersey Board of Public Utilities.</p>
<p>The <b>OGE Energy Corp.</b> board of directors named <b>Peter B. Delaney</b> president and COO. Delaney also has been elected to serve on the company’s board. Previously, he served as executive vice president and COO. Delaney joined OGE Energy in April 2002.</p>
<p><b>FirstEnergy</b> elected <b>Michael J. Anderson</b> to its board of directors, effective Feb. 1, 2007. Anderson is a director of The Andersons, a diversified company with interests in agriculture, ethanol, and general merchandise retailing.</p>
<p><b>Stephen C. Byrd</b> joined <b>Public Service Enterprise Group Inc.</b> as senior vice president – finance, business development, strategy, and M&amp;A. Byrd comes to PSEG after more than nine years at Morgan Stanley, most recently as executive director in the firm’s global energy and utilities group</p>
<p><b>The California Public Utilities Commission</b> (PUC) announced that the state senate confirmed the appointment of <b>Rachelle Chong</b> as a member of the commission by a vote of 33-0. <b>Gov. Arnold Schwarzenegger</b> appointed Chong to the PUC on Jan. 12, 2006, designating her to fill the remainder of an unexpired term previously held by Susan P. Kennedy. Chong’s current term expires Jan. 1, 2009. In 1993, <b>President Bill Clinton</b> had nominated Chong to a Republican seat on the FCC. After Senate confirmation, she took office as the first Asian-American FCC Commissioner in May 1994. She had then served until November 1997.</p>
<p><b>David E. Blabey</b>, formerly executive vice president, secretary, and general counsel of the New York Power Authority, joined the law firm of Hiscock &amp; Barclay LLP in Albany, N.Y. Blabey has served as general counsel to the New York State Public Service Commission and as counsel to the New York State Senate Energy Committee.</p>
<p> </p>
<p><span class="boldred">Retired: </span><b>PPL Corp.</b> Executive Vice President and CFO <b>John Biggar</b> will retire April 1.</p>
<p> </p>
<p><span class="boldred">Deceased: </span><b>Shalom Zelingher</b>, chief technology development officer at New York Power Authority, died Jan. 23 at age 55.</p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/people">People</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/people">People</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/article_images/0703/images/0703-cvr.jpg" width="1121" height="1500" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/arnold-schwarzenegger">Arnold Schwarzenegger</a><span class="pur_comma">, </span><a href="/tags/california-public-utilities-commission">California Public Utilities Commission</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/constellat">Constellat</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/constellation-energy">Constellation Energy</a><span class="pur_comma">, </span><a href="/tags/dynegy">Dynegy</a><span class="pur_comma">, </span><a href="/tags/fcc">FCC</a><span class="pur_comma">, </span><a href="/tags/firstenergy">FirstEnergy</a><span class="pur_comma">, </span><a href="/tags/ge">GE</a><span class="pur_comma">, </span><a href="/tags/ls-power">LS Power</a><span class="pur_comma">, </span><a href="/tags/morgan-stanley">Morgan Stanley</a><span class="pur_comma">, </span><a href="/tags/naruc">NARUC</a><span class="pur_comma">, </span><a href="/tags/national-association-regulatory-utility-commissioners">National Association of Regulatory Utility Commissioners</a><span class="pur_comma">, </span><a href="/tags/new-jersey">New Jersey</a><span class="pur_comma">, </span><a href="/tags/new-jersey-board-public-utilities">New Jersey Board of Public Utilities</a><span class="pur_comma">, </span><a href="/tags/new-york-power-authority">New York Power Authority</a><span class="pur_comma">, </span><a href="/tags/new-york-state-public-service-commission">New York State Public Service Commission</a><span class="pur_comma">, </span><a href="/tags/newenergy">NewEnergy</a><span class="pur_comma">, </span><a href="/tags/oge-energy">OGE Energy</a><span class="pur_comma">, </span><a href="/tags/peter-b-delaney">Peter B. Delaney</a><span class="pur_comma">, </span><a href="/tags/ppl">PPL</a><span class="pur_comma">, </span><a href="/tags/ppl-corp">PPL Corp</a><span class="pur_comma">, </span><a href="/tags/ppl-corp-0">PPL Corp.</a><span class="pur_comma">, </span><a href="/tags/public-service-enterprise-group">Public Service Enterprise Group</a><span class="pur_comma">, </span><a href="/tags/retired">Retired</a> </div>
</div>
Thu, 01 Mar 2007 05:00:00 +0000puradmin13960 at https://www.fortnightly.comPeoplehttps://www.fortnightly.com/fortnightly/2006/10/people
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">People</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - October 2006</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><span class="boldred">New Opportunities:</span> <strong>Kansas City Power &amp; Light</strong> (KCP&amp;L) announced the promotion of <b>Kevin Bryant</b> to vice president of Energy Solutions. Bryant comes to this position from KCP&amp;L’s service company, where he was manager of corporate finance.</p>
<p><strong>American Electric Power</strong> (AEP) announced a series of executive reassignments as part of the company’s succession planning strategy. All reassignments are effective Sept. 1. <b>Susan Tomasky</b>, executive vice president and CFO, has been named executive vice president, shared services. <b>Holly Koeppel</b>, executive vice president, AEP Utilities - East, will succeed Tomasky as executive vice president and CFO. <b>Robert Powers</b>, executive vice president, generation, will assume responsibilities as executive vice president, AEP Utilities - East. <b>Nicholas Akins</b>, president and COO of AEP’s Southwestern Electric Power Co. (SWEPCO) operating unit, will assume responsibilities as executive vice president, generation. <b>Venita McCellon-Allen</b>, senior vice president, shared services, will succeed Akins as president and COO of SWEPCO.</p>
<p><strong>Pacific Gas and Electric Co.</strong> elected <b>Bill Morrow</b> as president and COO. Morrow assumes the role vacated last January when <b>Tom King</b> became CEO. Morrow has more than a decade of experience as a senior executive with Vodafone.</p>
<p><b>Bob Drennan</b>, a 23-year Progress Energy veteran, has been named vice president of investor relations, a newly created position. Drennan joined Carolina Power &amp; Light, now Progress Energy, in August 1983 and has held numerous leadership positions in the treasury and strategic planning departments. He has directed the company’s investor relations activities for 17 years.</p>
<p><strong>Constellation Energy</strong> named <b>Mark P. Huston</b> as COO of its retail subsidiary, Constellation NewEnergy. Huston served most recently as vice president, electric transmission and distribution, for Constellation Energy’s regulated utility, Baltimore Gas and Electric. He has been with the company for more than 20 years. Baltimore Gas and Electric Co. announced that <b>Stephen J. Woerner</b> would succeed Huston. Woerner began his career with BGE in 1990 and most recently was manager of distribution construction operations and maintenance.</p>
<p> </p>
<p><span class="boldred">Resigned:</span> <strong>Pike Electric Corp</strong>. announced the resignation of <b>Mark Castaneda</b> as its CFO, effective Aug. 18. Castaneda will pursue other professional opportunities. <b>Anthony Slater</b>, Pike Electric’s vice president of finance, will replace Castaneda as CFO.</p>
<p>WGL Holdings Inc. announced that <b>Frederic M. Kline</b>, vice president and CFO, will resign his position effective Sept. 29, 2006, after more than 28 years with the company. His retirement will become effective on Feb. 1, 2007.</p>
<p> </p>
<p><span class="boldred">Retired:</span> <strong>MDU Resources Group Inc.</strong> announced the retirement of <b>Martin A. White</b>, chairman and CEO. Harry J. Pearce was elected chairman of the board. <b>Terry D. Hildestad</b> was named president and CEO for the corporation and also was named to the board. White joined MDU Resources as vice president of corporate development in 1991. MDU Resources also announced the retirement of <b>Robert L. Nance</b> from its board of directors. Nance has been a member of the MDU Resources board since 1993.</p>
<p><strong>PPL Corp.</strong> announced that William F. Hecht, the company’s chairman and CEO, will retire Oct. 1. The company previously announced that James H. Miller, who currently serves as president of the company, will assume the additional roles of chairman and CEO upon Hecht’s retirement.</p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/people">People</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/people">People</a></li></ul></div><div class="field field-name-field-image-picture field-type-image field-label-above"><div class="field-label">Image Picture:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="https://www.fortnightly.com/sites/default/files/article_images/0610/images/0610-cvr.jpg" width="1121" height="1500" alt="" /></div></div></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/aep">AEP</a><span class="pur_comma">, </span><a href="/tags/american-electric-power">American Electric Power</a><span class="pur_comma">, </span><a href="/tags/baltimore-gas-and-electric">Baltimore Gas and Electric</a><span class="pur_comma">, </span><a href="/tags/bge">BGE</a><span class="pur_comma">, </span><a href="/tags/constellat">Constellat</a><span class="pur_comma">, </span><a href="/tags/constellation">Constellation</a><span class="pur_comma">, </span><a href="/tags/constellation-energy">Constellation Energy</a><span class="pur_comma">, </span><a href="/tags/epc">EPC</a><span class="pur_comma">, </span><a href="/tags/ge">GE</a><span class="pur_comma">, </span><a href="/tags/james-h-miller">James H. Miller</a><span class="pur_comma">, </span><a href="/tags/newenergy">NewEnergy</a><span class="pur_comma">, </span><a href="/tags/pacific-gas-and-electric">Pacific Gas and Electric</a><span class="pur_comma">, </span><a href="/tags/ppl">PPL</a><span class="pur_comma">, </span><a href="/tags/ppl-corp">PPL Corp</a><span class="pur_comma">, </span><a href="/tags/ppl-corp-0">PPL Corp.</a><span class="pur_comma">, </span><a href="/tags/progress">Progress</a><span class="pur_comma">, </span><a href="/tags/progress-energy">Progress Energy</a><span class="pur_comma">, </span><a href="/tags/retired">Retired</a><span class="pur_comma">, </span><a href="/tags/southwestern-electric-power-co">Southwestern Electric Power Co.</a><span class="pur_comma">, </span><a href="/tags/stephen-j-woerner">Stephen J. Woerner</a><span class="pur_comma">, </span><a href="/tags/tom-king">Tom King</a><span class="pur_comma">, </span><a href="/tags/wgl-holdings">WGL Holdings</a> </div>
</div>
Sun, 01 Oct 2006 04:00:00 +0000puradmin14000 at https://www.fortnightly.comTransmission Upgrades: Who Pays?https://www.fortnightly.com/fortnightly/2004/11/transmission-upgrades-who-pays
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Transmission Upgrades:</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>John Seelke</p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - November 2004</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><blockquote><h3>Transmission Upgrades:</h3>
<h3>How to allocate the costs. </h3>
</p>
<p>Efforts to establish and quantify congestion-reduction and loss-reduction projects are progressing in electric markets with locational marginal price (LMP) regimes. The Path 15 upgrade approval by the California ISO two years ago was largely based upon its economic benefits. A draft report from the Electric Reliability Council of Texas (ERCOT), , states that ERCOT will consider transmission projects that are "economically justified by the reduction of congestion and losses."<sup>1</sup></p>
<p>The regulations from FERC Order No. 2000 can be interpreted as placing the responsibility on the regional transmission organization (RTO) to initiate these economic upgrade projects:</p>
<p>Such economic projects usually involve transmission upgrades that relieve bottlenecks, thereby freeing up lower-cost power to displace higher-cost generation dispatched due to insufficient transmission capacity. In addition to causing higher operating costs, inadequate transmission may affect reliability if the full output of a generator is not realized due to transmission constraints. </p>
<p>In markets that impose a generation reserve requirement upon their load-serving entities (LSEs), generation should be deliverable if it is to be counted toward meeting the region's reliability needs. Despite the obvious link between congestion and reliability, most planners consider these separate problems. Meeting reliability standards is a "must," while reducing congestion is a "want," since it is viewed as an economic issue only. This paper will use this commonly accepted framework, viewing congestion-reduction projects as discretionary economic investments. Therefore, the major issue facing central planners and stakeholders in an RTO is: "Who should pay for the cost of an economic upgrade?"</p>
<p>In the absence of participant funding, cost-allocation is a critical issue in regions that use zonal (a.k.a., "license-plate") rates. The "who pays" question becomes, "Which zone(s) should be allocated a portion of the project's revenue requirements?" True participant funding leaves decisions on economic upgrades to the marketplace: Any entity may self-fund an economic transmission project in return for the incremental financial transmission rights (FTRs) created by the project, as well as the lower (or higher prices) resulting from the project.<sup>4</sup> Zonal rates are not affected since the funding for the project is never included in any zone's revenue requirements. Some markets have imposed participant funding on new generation interconnections, thereby providing incentives for new generators to consider both the transmission cost and congestion impacts of their siting decision. PJM requires new generators to participant-fund their related network upgrade costs. Order No. 2003 permits participant funding in an RTO as an alternative to its "crediting with interest" policy.<sup>5</sup></p>
<p>However, for non-interconnection related transmission projects targeted at congestion or loss reduction, the issue of who should pay is still being addressed in RTOs. The obvious answer is that "beneficiaries" should pay. However, the complexity of LMP markets, coupled with deregulation, has made this question a difficult one to answer. This paper addresses this issue by examining the impact of a hypothetical congestion-reduction project on generators and loads from two perspectives:</p>
</p>
<li>When the generators and loads are part of a vertically-integrated utility; and</li>
<li>When the generators are independently owned in a deregulated environment.</li>
<h3>The Flow of Money in an RTO</h3>
<p>Figure 1 shows the flow of market money from those who pay for service to those who provide service. Excluded from the diagram are:</p>
</p>
<li>Payments to the transmission owners for network service;</li>
<li>Monies collected for through-and-out service, which the RTO collects and distributes to the transmission owners; and</li>
<li>Payments by the load to the RTO to cover the operational and administrative costs of the RTO.</li>
<p>No specific RTO is assumed in Figure 1. However, the model assumes that marginal losses are included in the LMP, as is the practice in the New York ISO and ISO-New England, and as is proposed in the Midwest ISO and PJM. </p>
<p>The basic LMP equation is represented as the sum of various price components:</p>
<p>LMP (at bus "i") = </p>
<p>LMP(at the reference bus) + </p>
<p>LMP(congestion at "i")+ </p>
<p>LMP(marginal losses at "i")</p>
<p>This mathematical LMP framework will not be discussed here. The reader is referred to publicly available descriptions.<sup>6</sup></p>
<h3>A Congestion-Reduction Example</h3>
<p>Assume a simple RTO system with four generators as the sources and five load buses as the sinks. Figure 2 shows the system for a one-hour period before a congestion-reduction project is implemented. For simplicity, assume that the Ancillary Service Revenue and Ancillary Payments are zero (i.e., ignore their impact). Figure 2 shows the generation and load, as well as LMPs at each bus for the one-hour period. By focusing on a one-hour period, the mechanics of the calculation of benefits are more easily demonstrated. For simplicity, this RTO has only one load zone. The term "Generator Variable Costs" includes fuel costs, variable operation and maintenance expenses, and emission allowance cost.</p>
<p>complete the economic picture for this one hour, the following will be calculated:</p>
</p>
<li>Marginal loss credits</li>
<li>FTR revenues</li>
<p><b>Marginal loss credits </b>represent the over-collection of monies for losses: they represent the difference between the payments from the load (excluding congestion) and the revenues paid to the generators (excluding congestion). Figure 3 shows the marginal loss credits for this hour. As a practical matter, these would not be settled hourly. Excluding congestion-related payments, loads paid $252.00 more to the RTO than the RTO paid to generators. This overpayment is returned to the load. </p>
<p>FTR revenues represent payments to FTR holders. FTR revenues represent the difference between congestion payments by the load and congestion revenue paid to the generators. The total FTR revenue that the RTO will collect is shown on Figure 4. Like marginal loss credits, these revenues belong to the load.<sup>7</sup> Likewise, FTRs are not settled hourly as they are in this example.</p>
<p>One may now calculate the revenues and payments for generators and loads in this RTO. Figure 5 shows the tally. If the generators and loads in this example are part of a vertically-integrated utility, the net generator revenues of $928.25 in this example (= $5,838.25 - $4,910.00) are "owed" to the load. If these net generator revenues are subtracted from the net load payments of $5,838.25, the net cost to serve the load is equal to $4,910.00, or the sum of the generators' variable costs (the system's production costs). These computations are shown on Figure 5, lines 16-18. While one might expect this to be the case in a vertically-integrated utility, it is comforting to know that this approach arrives at a familiar result using LMP mathematics. In fact, one carefully examining the equations in Figure 1 would have predicted this result.</p>
<h3>After a Congestion- Reduction Project </h3>
<p>One may now examine the same one-hour period with one change: implementation of a project to reduce congestion. This project might be the addition of a phase-shifting transformer or a new or upgraded transmission line to add redundancy (new) or to increase its capacity (upgrade).<sup>8</sup> While the loads are the same as before, the generation dispatch has changed, reducing costs. Although total losses would be slightly reduced (thereby reducing the generators' collective output), they are assumed to remain the same in this example. The results are shown on Figure 6, along with comparable tables showing the impact on marginal loss credits (Figure 7), FTR revenues (Figure 8), and RTO revenues and payments (Figure 9).<sup>9</sup> As one might expect, the congestion-reduction project reduced costs: The zonal LMP decreased from $24.92 to $23.81/MWh and total production costs declined from $4, 910 to $4, 516, or $394. In a vertically integrated utility, this reduced production cost would measure the entire economic benefit of the congestion-reduction project. However, if generation is independently owned, their economic gains or losses they experience may not flow back to the customers. The change in net revenue for each generator will determine which generators benefit or lose from the congestion reduction project.</p>
<h3>Winners and Losers</h3>
<p>Figure 10 shows the project's benefits to the load and to each generator, and Figure 11 shows this data graphically. As noted previously, if this congestion-reduction project were implemented in a vertically integrated utility, the measure of benefits is the change in production costs, or $394 ($4, 910 to $4, 516). A vertically integrated utility would be expected to compare the revenue requirements of implementing the congestion-reduction project with the fuel (and purchased power) savings forecasted over some future period. However, in an RTO with deregulated generation, the benefit from the perspective of the load is only $193.08. In this simple example, Generators #1 and # 3 increased their net revenues (or profits before taxes) by $185 and $178.67, respectively, while Generator # 2 and # 4 lost $137.75 and $25, respectively. </p>
<h3>Cost-Allocation Implications</h3>
<p>Consider an RTO like the Midwest ISO. It serves 11 states, three of which (Illinois, Michigan, and Ohio) have deregulated. The remaining states have traditional vertically integrated utilities. The Midwest ISO is in the process of trying to define the proper "benefits" measures for economic transmission upgrades as well as an equitable means for allocating costs to customers from such upgrades. In the Midwest ISO as well as other RTOs, the resolution of the issue is still a work-in-progress.</p>
<p>This example in this paper raises policy issues that all stakeholders (loads, generators, and state regulators) should consider in the Midwest ISO, as well as in other RTOs where there is a mix of vertically integrated and deregulated utilities.<sup>10</sup></p>
</p>
<ol>1. The revenue requirements for new transmission facilities are currently recovered in the transmission rates charged to customers (i.e., the load in this example). If generators benefit from an economic upgrade, should they be assessed a charge that is proportional to their benefits? If so, how should such a charge be calculated and levied? What about generators who lose net revenues as a result of the upgrade? Should they be compensated?</ol>
</p>
<ol>2. If the answer to charging or crediting generators is "no" because some of the generators are deregulated, should the RTO benefit/cost criteria for implementing economic upgrades only measure the benefits to those loads that will pay the cost? Assume that a "load-only" benefit measure is adopted in an RTO because of the presence of deregulated generation.<sup>11</sup> Since loads only receive a portion of the benefits, the resulting benefit/cost ratio will be lower in a deregulated model than in a vertically integrated regulatory environment. To illustrate, suppose that the cost of the upgrade in the example is $100, and that the RTO has adopted a minimum acceptable benefit/cost threshold of 2.5. With a "load-only" RTO test, the benefits are $193.08, resulting in a B/C ratio of 1.93. In the vertically integrated environment the benefits are $394, resulting in a B/C ratio is 3.94. The project would fail the RTO test and not be constructed. However, it would probably be built in a vertically integrated environment since the B/C ratio is much more favorable.</ol>
</p>
<ol>3. Given that the "benefits" from an economic project can vary among any subset of market participants, should any market participant be allowed to voluntarily self-fund (i.e., participant-fund) economic transmission projects that fail the RTOs economic criteria but that meet its own criteria? The answer should be "yes" since this approach would leave all market participants (loads and generators) with more ability to lower costs (loads) or improve profitability (generators) than in a centrally planned RTO with a minimum economic criterion. State regulators in vertically integrated regime should determine whether the RTO has left unfunded additional cost-effective economic transmission projects that its utilities should fund.</ol>
<p>Participant funding will give stakeholders an additional method of funding economic transmission upgrades. Projects that meet a "load-only" benefits test can be planned and implemented by the RTO, with their cost recovered in zonal rates. However, with participant-funding, market participants can work with the RTO to plan additional upgrades that meet their own economic criteria. They can elect to participant-fund projects that are beneficial to them and thereby not impose the economic cost of the project on zonal rates. </p>
<p><b><i class="endnote">Endnotes</i></b></p>
<ol>
<li> See ERCOT draft dated July 12, 2004.</li>
<li>See 18 CFR, § 35.34 (j) (1)</li>
<li>See 18 CFR, § 35.34 (j) (7).</li>
<li>Lower prices are beneficial for loads, but higher prices benefit generators. </li>
<li>Order No. 2003 (104 FERC 61,103), paragraph 28, discusses participant funding. The default "crediting with interest" approach is in Order 2003-A (106 FERC 61,220) in the Standard Large Generator Interconnection Agreement, Section 11.4. Under this approach, the transmission customer receives transmission service credits that amortize its initial cost of the "Network Upgrades" the transmission customer initially funded. The transmission customer receives interest on the unamortized balance, and any balance remaining after five years must be completely refunded. </li>
<li>See New York ISO Technical Bulletin 062, "Locational Based Marginal Pricing - Meaning and Myths" dated Sept. 20, 2000.</li>
<li>In RTOs where FTRs are directly allocated to loads, the load directly receives congestion payments. In RTOs that auction off the FTRs, the loads receive the auction revenues and the FTR holders receive congestion payments. Assuming that FTR auction revenues approximate actual FTR payments in total value, then the result, from the perspective of the load, is the same.</li>
<li>Added redundancy reduces single contingency ("n-1") constraints that limit loading on facilities.</li>
<li>Software such as NewEnergy's PROMOD IV® can be used to determine the forecasted impacts associated with an economic transmission upgrade.</li>
<li>Although not yet a FERC-approved RTO, ISO New England is an example of another mixed region. While Vermont is the only state still vertically integrated, some public power entities do not offer retail choice.</li>
<li>A "load-only" benefits test makes allocating transmission investment to zones straightforward since the costs can be allocated in proportion to the benefits in each zone. </li>
</ol>
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Mon, 01 Nov 2004 05:00:00 +0000puradmin11104 at https://www.fortnightly.comPeoplehttps://www.fortnightly.com/fortnightly/2004/08/people
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>New Opportunities:</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Pueblo Chieftain</p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - August 2004</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><blockquote><h1 class="dept">People</h1>
<h3>New Opportunities:</h3>
<p>The Federal Energy Regulatory Commission appointed <b>Joseph H. McClelland</b> director of its Division of Reliability in the Office of Markets, Tariffs, and Rates. McClelland is general manager of the Custer Public Power District in Nebraska.</p>
<p>Colorado Gov. Bill Owens appointed <b>Carl Miller</b>, a state representative, to the Colorado Public Utilities Commission (PUC). The reports that Miller cannot seek re-election because of term limits.</p>
<p><b>Elaine Ziemba</b> is the new federal af-fairs representative for CMS Energy. Zi-emba's 20 years of government relations experience includes time with NRG Energy Inc., Northern States Power Co., and American Gas Association.</p>
<p><b>Carl L. English</b> joined American Electric Power (AEP) as president of AEP Utilities. <b>John B. Keane</b> joined AEP as president, general counsel, and secretary.</p>
<p><b>George Earle</b> was elected to his third 1-year term as president of the U.S. Fuel Cell Council. Earle is the director of hydrogen infrastructure for Plug Power Inc.</p>
<p>Mirant named <b>Curt Morgan</b> executive vice president and COO of the company, and the company hired <b>Terry Thompson</b> as vice president of restructuring. Morgan previously was executive vice president of Mirant's North American operations; Thompson was director of treasury and business development at Delta Airlines Inc.</p>
<p>The Pennsylvania PUC appointed Deputy Executive Director <b>Karen O. Moury</b> as acting executive director, and it approved the transfer of Executive Director <b>Veronica A. Smith</b> to chief administrative law judge for the PUC.</p>
<p>The DTE Energy board of directors named <b>Gerard Anderson</b> president of the company. Anderson, with the company since 1993, moves up from his role as president and COO of DTE Energy's Energy Resources unit.</p>
<p>NewEnergy Associates appointed <b>William P. McCarrick</b> as vice president, sales. McCarrick's previous positions include roles with SunGard Energy Systems and Henwood Energy Services Inc.</p>
<h3>Awarded:</h3>
<p><b>Elizabeth S. Robertson</b>, director of the energy resources division at the Georgia Environmental Facilities Authority (GEFA), and <b>Faramarz Vakili-Zadeh</b>, associate director of physical plant at the University of Wisconsin-Madison, received the Energy Efficiency Forum's Public Service Award in June.</p>
<h3>Shuffle Board:</h3>
<p>The Sempra Energy board of directors elected <b>Donald E. Felsinger</b> president, COO, and director at the company. Sempra also elected <b>Neal E. Schmale</b> to its board. Schmale is Sempra's executive vice president and CFO.</p>
<p><b>Wayne Brunetti</b>, chairman and CEO of Xcel Energy Inc., was elected chairman of the Edison Electric Institute. EEI's other incoming chairs are AEP CEO <b>Michael G. Morris</b>, who was elected first vice-chairman, and Cinergy CEO <b>James E. Rogers</b>, who was elected second vice-chairman.</p>
<p>The National Regulatory Research Institute (NRRI) elected <b>Carol J. Murphy</b> to her second 1-year term as board chair. Murphy is a commissioner on the New Jersey Board of Public Utilities.</p>
<h3>Retired:</h3>
<p><b>Chris C. Richardson</b>, former chairman, president, and CEO of the Schneider Electric North American Operating Division, was appointed to the Schneider Electric board of directors.</p>
<p><b>Jeff Rankin</b>, president of TECO Transport, a TECO Energy Inc. subsidiary, will retire Sept. 1. He will be replaced by <b>Sal Litrico</b>, president of TECO Ocean Shipping.</p>
<h3>Resigned:</h3>
<p><b>Jessie Roberson</b> resigned as assistant secretary for environmental management at the Department of Energy.</p>
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Sun, 01 Aug 2004 04:00:00 +0000puradmin11066 at https://www.fortnightly.comPeoplehttps://www.fortnightly.com/fortnightly/2004/03/people
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>New Opportunities:</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>We welcome submissions to People, especially those accompanied by a high-resolution color photograph. E-mail to: <a href="mailto:photos@pur.com">photos@pur.com</a></p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - March 2004</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><blockquote><h1 class="dept">People</h1>
<h3>New Opportunities:</h3>
<p>Allegheny Energy named <b>Max Kuniansky</b> director of investor relations. He previously held the position of vice president of investor relations for B/E Aerospace and investor relations specialist for FPG Group Inc.</p>
<p>Constellation NewEnergy named <b>Carrie Cullen</b> Hitt vice president of government and regulatory affairs, and <b>Daniel J. Sullivan</b> vice president of marketing. Hitt has been with Constellation NewEnergy for five years. Sullivan was most recently with Tractebel Energy Services. Also, Constellation Energy Source named <b>John Schaffer</b> general manager of the Nashville District Energy System (DES).</p>
<p>Xcel Energy named <b>Teresa S. Madden</b> vice president and controller. She previously worked for Xcel Energy Customer and Field Operations.</p>
<p>The New York Public Service Commission (PSC) appointed <b>James Gallagher</b> director of the New York State Department of Public Service's office of electricity and environment. He had been acting director there since February 2003. Shortly after Gallagher's appointment, New York PSC Chairman <b>William M. Flynn</b> appointed <b>Robert H. Mayer</b> director of the office of telecommunications. He also named <b>Jaclyn Brilling</b> secretary of the commission.</p>
<p>Black Hills Corp. named <b>David R. Emery</b> its president and CEO, moving him from the company's retail operations, where he had served as president and COO. The Black Hills board also elected <b>Stephen D. Newlin</b> to fill a board vacancy.</p>
<p>El Paso Corp. named <b>Lisa A. Stewart</b> president of production and non-regulated operations. She comes to El Paso from Apache Corp., where she was executive vice president of business development and E&amp;P services. Also at El Paso, <b>Mark Leland</b> assumed the position of CFO of production and non-regulated operations.</p>
<p>The Committee of Chief Risk Officers hired <b>Robert M. Anderson</b> as its executive director. He previously worked with El Paso Corp., McKinsey &amp; Co., and BP.</p>
<p>Trans-Elect's board of directors promoted <b>Sharon B. Heaton</b> to senior vice president and general counsel of the company, and <b>Stephen A. Shulman</b> to senior vice president and CFO of Trans-Elect. Heaton previously had been senior vice president and deputy general counsel, and Shulman had been vice president of finance.</p>
<p>Dominion elected <b>Thomas F. Farrell II</b> president and COO. He had been CEO of the Dominion Energy unit.</p>
<p>Lukens Energy Group promoted <b>Glen Sweetnam</b> to vice president and principal at the company. Sweetnam has been with Lukens since January 2003.</p>
<p>The Western Electricity Coordinating Council (WECC) appointed NorthWestern Energy's <b>M. LeRoy Patterson</b> director of operations and training. Patterson currently is director of transmission operations and planning for NorthWestern. The WECC also appointed <b>Robert L. Dintelman</b> COO. Dintelman has been with the council for 29 years.</p>
<h3>Resignations:</h3>
<p><b>Michael Bemis</b> resigned as Exelon's executive vice president and president of Exelon Energy Delivery. <b>John L. Skolds</b>, who had been president of Exelon Nuclear and chief nuclear officer, replaced Bemis. <b>Christopher M. Crane</b>, COO of Exelon Nuclear, stepped into Skolds' earlier roles.</p>
<p>The Fort Worth Star-Telegram reported that <b>Rebecca Klein</b>, leader of the Texas PUC, stepped down effective March 1.</p>
<h3>Deaths</h3>
<p>FirstEnergy Corp. Chairman and CEO <b>H. Peter Burg</b> died Jan. 13.</p>
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Mon, 01 Mar 2004 05:00:00 +0000puradmin11000 at https://www.fortnightly.comTechnology Corridorhttps://www.fortnightly.com/fortnightly/2004/02/technology-corridor
<div class="field field-name-field-import-deck field-type-text-long field-label-inline clearfix"><div class="field-label">Deck:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Utilities are finding strategic benefits in demand-based metering technologies.</p>
</div></div></div><div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Guerry Waters</p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - February 2004</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><blockquote><h1 class="dept">Technology Corridor</h1>
<h3>Utilities are finding strategic benefits in demand-based metering technologies.</h3>
</p>
<p>It's been years since utilities regarded customers as mere check-writing extensions of their meters. In fact, utilities' information technology focus during the past decade has centered on gaining greater control over customer information. The objective: Focus on-and fill-customer needs. The results are everywhere:</p>
<ul>
<li>Consolidated and converged bills;</li>
<li>Call centers that answer questions immediately;</li>
<li>Internet-based self-service; and</li>
<li>Billing options.</li>
</ul>
<p>Now a new era is emerging. Customers of all sizes are starting to control energy consumption in response to market signals. The vehicle for this change is the sophisticated metering technology now being pushed down from larger to smaller customers.</p>
<p>Time-of-use meters once reserved for large commercial sites are finding their way to the home. Office buildings and other businesses, in turn, are installing interval meters that were previously reserved for large industrial sites.</p>
<p>States and utilities have long permitted residential time-of-use meters. It took California's deregulatory woes, however, to bring time-of-use metering to the general public's attention. Time-of-use metering promised financial rewards to consumers trying to alleviate the crisis by switching consumption to off-peak hours-and penalties for neighbors who let their pool heaters run during the daytime. Today, California is one of a number of states in various stages of pushing sophisticated meters into the home to empower consumers.</p>
<p>Similarly, Idaho Power has initiated a pilot program to test the value of more sophisticated residential meters. Through the "installation of critical peak TOU-capable equipment," regulators hope the Idaho Power program will give consumers control and demonstrate the meters' contribution to demand response and load control-a recognition that even the smallest customers can help maintain grid stability and reduce the long-term cost of excess transmission capacity.</p>
<h3>Demand Response</h3>
<p>Demand response is a relatively recent trend. It allows utilities to use market-based signals like price and incentives to encourage specific consumption behavior during specific periods by customers of any size.</p>
<p>Most of today's demand-response programs require considerable interaction between utility and customer.</p>
<p>Typically, utilities short on resources or experiencing excess demand, or both, ask volunteer facilities to cut back during a specific period. They reward those that respond with financial incentives in proportion to the length and size of the reduction.</p>
<p>Demand response replaces the old "interruptible rate" model, under which utilities controlled power cuts. Demand response, in contrast, permits customers to define their level of participation each time the utility requests a reduction. They can weigh the energy cost against the value of their production, maintaining full supply, during, for instance, critical manufacturing processes, while reducing it if the only results will be a few complaints from warmer-than-usual office workers.</p>
<p>Idaho's pilot is one of the first to test this concept with consumers. But increasing numbers of utilities are using it with larger customers. The Edison Electric Institute reported as early as 2001 that 27 of its utility members were offering some form of demand response.<sup>1</sup> That number has continued growing<sup>2</sup> though most programs are preliminary or relatively simplistic in nature. Still, the results are promising. A 2001 New York program achieved an average load reduction of 1.1 percent<sup>3</sup> -good enough that regulators support a state subsidy for interval-meter installation and urge program expansion.<sup>4</sup></p>
<h3>The Data Issue</h3>
<p>Widespread use of sophisticated metering confronts utilities with the question of what to do with all the data these new meters generate.</p>
<p>Some solve the problem by pre-processing data before feeding it into the billing system. Others use complex-billing software to inform investment, scheduling, and forecasting decisions.</p>
<p>Of equal or greater benefit are the product opportunities that spring from careful data analysis.</p>
<p>"As the economy kicks in, increasing numbers of commercial and industrial customers will have money to invest in new ways to cut long-term costs," reports Jim Spiers, META Group affiliate analyst. "They're agitating for-and getting-access to the wholesale grid. They want something more than their utilities have traditionally provided-better pricing, more flexibility, and higher quality.</p>
<p>"The issue is not the commodity rate per se. The issue is their overall cost of service/delivered product to their ultimate consumers. Energy-intensive commercial and industrial customers must make decisions based on how their energy quality, cost, and consumption drive to their bottom line. They need price signals and consumption option analysis to stream through all business processes. If utilities can't help their consumption, data is of limited business use."</p>
<p>Utilities' demand-response programs will speed and intensify those demands. AMR Research's Jill Feblowitz points out that New York's Emergency Demand Response (EDR) puts in place equipment and processes that "will change the way commercial and industrial customers consume energy." She continues, "As more C&amp;I customers use EDR in non-emergency situations, [their utilities] will see a business opportunity."<sup>5</sup></p>
<p>That opportunity for utilities might become a business necessity. Zarko Sumic, META Group vice president, sees a future in which "profit margins are too low to sustain a low-cost provider, commodity-only business strategy for large customers. Instead, large customer retailers will need to focus on delivering value-added services like energy management, performance contracting, and consolidated billing. Account managers will need an intimate knowledge of their customers' businesses in order to recommend and apply contract options that return positive results for both customer and utility."</p>
<h3>Profiling</h3>
<p>Some utilities already are far down the track in responding to the needs of large customers.</p>
<p>TXU Energy, for instance, uses complex billing to offer load profiling. Profiles identify a customer's opportunities for energy- and maintenance-saving improvements, establish benchmarks, and help customers evaluate competing supply offers.</p>
<p>Given the ability to process complex data, the variations on product offerings are virtually endless. One large European utility, for instance, offers customers multiple options for overriding basic contracts, many of which can be used simultaneously. Options include:</p>
<ul>
<li>Special days on which customers can alter demand;</li>
<li>Occasional offers of lower-priced electricity if demand falls within specific ranges;</li>
<li>Credit options for pre-defined amounts of electricity, for use when demand is higher or lower than contract specifications; and</li>
<li>"Tickets" to increase or decrease the contracted demand level by a negotiated amount of power for a predefined period of time.</li>
</ul>
<p>Within these options are still further refinements. Tickets, for instance, may be structured for use during specific periods. They may expire at different times. And in all cases, when such tickets are used, the exact nature of the use and the accompanying separate energy and demand charges are spelled out in the bill.</p>
<p>Such programs are expanding. Greg Galluzzi of TMG Consulting says, "We have seen intelligent meter interfaces to CIS systems grow from mere pilots of 100 to 500 meters to full-scale implementations. The need for CIS systems to encompass this technology is imperative to providing customers with exceptional levels of service."</p>
<p>New metering dramatically expands utilities' data-handling requirements. Stepping up internal facilities for analyzing this data lets utilities experiment with different price signals and incentives. By gauging the effect on overall load and on grid constraints, utilities can maximize the return on existing transmission assets and reduce the need for new investment.</p>
<p>Just as important, utilities can use the new data to develop regulated and competitive products for specific customer niches. This is more than a profit opportunity. It is also part of a utility's public obligation. Utilities that fail to satisfy the complex and growing needs of larger customers, encourage them to seek alternatives like self-generation. The result may be both lower utility returns and increased system-maintenance costs for remaining customers.</p>
<p>The answer is not to chain customers to the grid with exit penalties, but to develop the ability to respond to their needs.</p>
<p><b><i class="endnote">Endnotes</i></b></p>
<ol>
<li>Jim Spiers, "Energy Management + Price-Responsive Demand = Effective Customer Choice," META Group, July 2001, <a href="http://www.metagroup.com/cgi-bin/inetcgi/jsp/displayArticle.do?oid=32200">http://www.metagroup.com/cgi-bin/inetcgi/jsp/displayArticle.do?oid=32200</a>.</li>
<li>"EEI Member and Non-Member Residential/Commercial/Industrial Efficiency and Demand Response Programs for 2003," Edison Electric Institute, June 2003, <a href="http://www.eei.org/industry_issues/retail_services_and_delivery/wise_energy_use/programs_and_incentives/progs.pdf">http://www.eei.org/industry_issues/retail_services_and_delivery/<br />wise_energy_use/programs_and_incentives/progs.pdf</a>.</li>
<li>Eric Hirst "Barriers To Price-Responsive Demand In Wholesale Electricity Markets," Edison Electric Institute, 2002, <a href="http://www.eei.org/industry_issues/retail_services_and_delivery/wise_energy_use/demand_response/barriershirst.pdf">http://www.eei.org/industry_issues/retail_services_and<br />_delivery/wise_energy_use/demand_response/barriershirst.pdf</a>.</li>
<li>Demand response programs are, for instance, included as a general rule in the U.S. Federal Energy Regulatory Commission's current Standard Market Design (SMD) proposal. See also the congressional testimony of FERC Chairman Pat Wood at <a href="http://www.ferc.gov/news/congressionaltestimony/WoodTestimony07-24-02.pdf">http://www.ferc.gov/news/congressionaltestimony/WoodTestimony07-24-02.pdf</a>.</li>
<li>Jill Feblowitz, "AES NewEnergy Brings Economic Demand Response to Life," AMR Alert, Tuesday, Aug. 14, 2001.</li>
</ol>
<hr />
<hr />
<h3>Demand-Response Technology</h3>
<p>Time-of-use meters measure consumption so that the total is divided among a relatively small number of blocks, generally two to five (on-peak, off-peak, shoulder, etc.). The block storing consumption changes according to the time of day or week.</p>
<p>Interval meters record a separate consumption measurement for each interval of time (each 10- or 30-minute period, for instance.</p>
<p>Costs vary widely. Typically, a residential time-of-use meter costs three to four times as much as a standard residential meter. A residential interval meter might be six times the cost of a standard one. A commercial interval meter might be about twice the cost of the residential interval meter.-G.W.</p>
<p>
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